Service tax Credit

This query is : Resolved

Kapil Jain (Querist)
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06 August 2010 Dear Friends

We are liable to excise duty
We take credit of service tax in payment of excise duty.
Now the question when we may take credit if
a. we make part payment to a party which cover full amount of service tax.
b. On freight – as the date of payment would be next monts.

ASHISH YADAV

ASHISH YADAV (Expert)
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06 August 2010 You can take credit only on cash basis.

1. there is no rule for part payment and avilment of credit. You can take 100% credit while making part payment.

2. The credit will be available at the time of payment i.e next month

srinath

srinath (Expert)
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06 August 2010 is it not tat if i pay part payment only part service tax can be taken as credit?....

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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06 August 2010

IF a part payment is made to a party )what ever it covers) proportionate service tax credit will be available service tax.

b. On freight – as the date of payment would be next months. . Credit will be available in next month

Kapil Jain

Kapil Jain (Querist)
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07 August 2010 If a am a Service Provider and make a bill of 10,000 with service tax 1030 now party paid only
1. 1000
2.2000
3.5000
What is my tax liability.

I think what is my tax liability the same would be allowe to other to take credit.

ADITYA

ADITYA (Expert)
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08 August 2010 It is quite simple what ever payment received to the service provider is inclusive of service tax and accordingly service provider is suppose to pay his service tax liability proportionately, irrespective of Service Bill Amount raised.

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