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Service tax credit

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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 my client is owner of showroom of two wheeler and service center.service center is registered under service tax .my client has taken service tax credit on courier bills,transportation bills.advertisement,telephone bills etc.which are related to showroom .service tax department has given a show cause notice to my client that why this service tax credit should not be reversed ,because it relates to arriving of new vehicle and this has no connection with authorised service station.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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24 January 2012 I think the revenue is correct in reversing the credit..if it is related to showrooms directly and for that purpose only...

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Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 as per my client view the activity of sales of new vehicle and service of it cannot be separated.because if we do not sale new vehicle ,how can the activity of service of vehicle will take place

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