Service tax credit

This query is : Open

Kaushal (Querist)
Follow

30 January 2014 My company is service provider. We got big project for 6 month and we will bill on March 2014 with Service Tax 12.36% Service tax amount Rs.123600 but In month of Jan 2014 we have received bill from our sub-contract vendor and charged service tax Rs.61800 (25% payable by vendor and 75
% by us ) . This amount is my Service Tax Credit amount but still we have not bill to our client. How can I apply service tax credit ? can we need to pay 75% our vendor bill before 5th Feb ? can we need to adjust March 2014 service tax against Jan 2014 credit ?

Kaushal

Kaushal (Querist)
Follow

31 January 2014 Please reply any one

Ajay Raghatate

Ajay Raghatate (Expert)
Follow

31 January 2014 Yes, you are liable to pay service tax on 75% for January,
And you are eligible to avail cenvat credit, and utilize/adjust when you billed.

Kaushal

Kaushal (Querist)
Follow

31 January 2014 Thanks for reply. if we will bill on APril 2014 can we c/f. Jan 2014 Service tax credit for next year ?

Kaushal

Kaushal (Querist)
Follow

31 January 2014 Thanks for reply. if we will bill on APril 2014 can we c/f. Jan 2014 Service tax credit for next year ?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now