Service tax credit
This query is : Open
20 April 2013
whether service tax credit available on payment of service tax on exempt services.?
please refer some references in support of this issue.
Regards,
Munna.
please refer some references in support of this issue.
Regards,
Munna.
20 April 2013
I am considering assessee is service provider only and question in for availability of credit on input service for an exempted service provided.
As per Rule 3 (1) of CENVAT Credit Rules, 2004 credit of service tax is available on input services received by the provider of output services. Now as per Rule 2(p) of CENVAT Credit Rules,2004 output service does not include service specified in Sec 66D (negative list of services). So credit not allowed on input services used in services mentioned in Sec 66D. Now there is mega exemption notification where a lot of services exempted. for these one need to go to Rule 6 of CENVAT credit rules where different methods are mentioned for calculation of CENVAT credit available in case on assessee providing taxable as well as exempted output services.
if assessee is providing only exempted service mentioned either in sec 66D or mega exemption notification then no CENVAT credit is available.
But it does not cover export of services, in those cases credit is available.
Pls. consult to your consultant before relying on above opinion.
As per Rule 3 (1) of CENVAT Credit Rules, 2004 credit of service tax is available on input services received by the provider of output services. Now as per Rule 2(p) of CENVAT Credit Rules,2004 output service does not include service specified in Sec 66D (negative list of services). So credit not allowed on input services used in services mentioned in Sec 66D. Now there is mega exemption notification where a lot of services exempted. for these one need to go to Rule 6 of CENVAT credit rules where different methods are mentioned for calculation of CENVAT credit available in case on assessee providing taxable as well as exempted output services.
if assessee is providing only exempted service mentioned either in sec 66D or mega exemption notification then no CENVAT credit is available.
But it does not cover export of services, in those cases credit is available.
Pls. consult to your consultant before relying on above opinion.
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
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Bank details not Visible on Traces Portal
- FCRA 6 E- Intimation
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- TDS ON EMAIL DOMAIN SERVICE BILL
- CAPITAL GAIN BASE ON NOTIFICATION
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Eway bill not cancelled within 24 hous what can be due
- TDS Deducted AY-2013-14 Not Reflected in 26as
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
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
