Service tax credit -tender cancle

This query is : Resolved

P.Harish (Querist)
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05 May 2016 Dear friends !

We had received services of Engineering Consultant to help Tendering on technical issues. He raised Service Invoice with Service Tax, We lost Tender & many occasions it happen & not gets Tender. Can we take Service tax credit as a Input Service? Since we don’t have any output service against this job but we paid fully to consultant.

Is it input service for any one who lost Tender but paid to consultant? Please advise

CA Himanshu Ojha

CA Himanshu Ojha (Expert)
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05 May 2016 Yes, you can take credit of service tax provided the services which you are providing are dutiable or in case if you are a manufacturer, the Final good which you are manufacturing at your factory are Dutiable. Even thought your tender was not selected but still you can take the credit. Generally it is allowable by department also.

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Rupesh Jain

Rupesh Jain (Expert)
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06 May 2016 you can take input if you are giving out put service or you are mfg concern. if you are not out of them, then you can not calim input of service tax.

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