Service Tax credit on bonus to contractor

This query is : Resolved

jorawar singh (Querist)
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28 August 2010 Hi,

I have one query regarding service tax. If a manufacturing comapny is paying bonus inclusive of service tax to contractor whether it can take credit of service tax or not? Also mention the service tax category in which company is liable to pay bonus inclusive of service tax.

Reply urgent.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 August 2010 It can be taken, Category is based on the contractor nature of service. In which service category contractor providing service the same category applicable for bonus payment also

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