Service tax input credit
This query is : Resolved
Rahul Kumar
(Querist)
27 March 2016
My qus. is.
Suppose service is provided in future but service provider issued invoice with full value today and mention service tax on invoice on full value. On the invoice it is mentioned that 50% amount is payable as advance and balance after providing of service (Service receiver paid 50% amount as advance with service tax on that 50% amount).
1. In that case whether service receiver is entitled to claim full cenvat credit i.e. 100% or only 50% because he had paid only 50% service tax.
2. How much amount service provider is liable to deposit regarding service tax whether 50% or total service tax (he has only received 50% amount of service tax from service receiver.
Suppose service is provided in future but service provider issued invoice with full value today and mention service tax on invoice on full value. On the invoice it is mentioned that 50% amount is payable as advance and balance after providing of service (Service receiver paid 50% amount as advance with service tax on that 50% amount).
1. In that case whether service receiver is entitled to claim full cenvat credit i.e. 100% or only 50% because he had paid only 50% service tax.
2. How much amount service provider is liable to deposit regarding service tax whether 50% or total service tax (he has only received 50% amount of service tax from service receiver.
CMA Loganathan Sekar
(Expert)
27 March 2016
it advised to issue invoice only for the advance received as it will avoid creating further complications.
incase invoice issued for the full amount but amount is received only 50% then for the remaining 50% amount has to be received within 30 days otherwise the service provider is liable to pay service tax on the unpaid 50% amount.
regarding cenvat, assessee is eligible only to the extent of taxes paid by him not on the invoice amount.
incase invoice issued for the full amount but amount is received only 50% then for the remaining 50% amount has to be received within 30 days otherwise the service provider is liable to pay service tax on the unpaid 50% amount.
regarding cenvat, assessee is eligible only to the extent of taxes paid by him not on the invoice amount.
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Rahul Kumar
(Querist)
30 March 2016
Sir my further Qus. is
if service provider issue a proforma invoice with service tax amount at the time of contract and we paid 50% amt.including ST on the basis of that proforma invoice. now can i claim service tax input credit of 50% of service tax still we have not received actual invoice ?
if service provider issue a proforma invoice with service tax amount at the time of contract and we paid 50% amt.including ST on the basis of that proforma invoice. now can i claim service tax input credit of 50% of service tax still we have not received actual invoice ?
CMA Loganathan Sekar
(Expert)
30 March 2016
You can claim only 50% of input services....
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