service tax
This query is : Resolved
04 November 2009
My client is a bank.The Bank collects service tax from the customers.However they also pay service tax on Telephone,Courier Services,Audiors Remuneration etc.Now,suppose bank has collected 2000 rs(Two Thousand only) as Service tax and has paid service tax of rs.1133.00(Eleven Hundred Thirty Three)on auditors remuneration.Can bank take credit of all the amoount.Is there any ceiling of Cenvat Credit for banks.I read somewhere that the maximum credit u can avail is 20% of the total service tax liability.Kindly guide in this matter.
04 November 2009
your client can take full credit. there is no ceiling limit.
05 November 2009
In my opinion, the banks are having both taxable and non taxable services. Therefore the bank cannot take full credit of the inputs available. It can take credit only on the basis of Rule 6 of the Cenvat credit rules, 2004.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- ITR 2 Short Term gain & Long term gain
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
