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 ?
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.
CAclubindia
