service tax input and out put set off
This query is : Resolved
31 March 2009
I paid service tax of Rs.10,000 for rental charges , and the same has sub-letted ( half of portion ) and collected Rs.6000 as service tax.
Now my question is can i take entire credit of Rs.6000, or is it proportionate basis ( since 50% sublet) which comes to Rs. 5000.
Whether 10,000-6,000=4,000 is correct. or
10,000-5000=5000 is correct.
Kindly suggest whether any circulations or provisions of service tax which is going to substantiate...
Now my question is can i take entire credit of Rs.6000, or is it proportionate basis ( since 50% sublet) which comes to Rs. 5000.
Whether 10,000-6,000=4,000 is correct. or
10,000-5000=5000 is correct.
Kindly suggest whether any circulations or provisions of service tax which is going to substantiate...
31 March 2009
At the very outset evaluate if you fall under the threshold limit of 10 lacs.
If you do fall under the threshold limit then the following answers are applicable to your enquiry.
When you have paid , you have paid in the capacity of a recipient.
When you have collected you have collected in the capacity of a provider
You can take the entire credit as you have consumed the services
So Input Credit ( Rs. 10000/- ) – Liability ( Rs. 6000/-) is correct, so you have
We don’t need a circular as this stands covered under the Cenvat Credit rules
If you do fall under the threshold limit then the following answers are applicable to your enquiry.
When you have paid , you have paid in the capacity of a recipient.
When you have collected you have collected in the capacity of a provider
You can take the entire credit as you have consumed the services
So Input Credit ( Rs. 10000/- ) – Liability ( Rs. 6000/-) is correct, so you have
We don’t need a circular as this stands covered under the Cenvat Credit rules
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