Service tax refund
This query is : Resolved
27 May 2017
One of my client is doing online business. They sale goods and deliver it to customer through logistic co.
They pay courier charges to logistic co. and pay service tax on it.
And they take Delivery charges from customer and collect service tax on it.
Q 1 . Is it possible to take input of service tax paid on courier charges.
Q 2. If they surrender service tax and there is surplus amount of input can they take refund of it.
They pay courier charges to logistic co. and pay service tax on it.
And they take Delivery charges from customer and collect service tax on it.
Q 1 . Is it possible to take input of service tax paid on courier charges.
Q 2. If they surrender service tax and there is surplus amount of input can they take refund of it.
CA R SEETHARAMAN
(Expert)
27 May 2017
1 Yes input credit can be taken on courier charges.
2 Such refund not possible.
2 Such refund not possible.
29 May 2017
Sir thanks for reply.
But actually on month basis input service tax is higher than the output service tax on delivery charges.
Say Input service tax on courier charges is 30,000 and output service tax on delivery charges is 15000 .
In this case are we eligible to take 100% credit of service tax paid on courier charges.
If yes then every month our Input credit will accumulate and can we claim refund from deptt for this accumulated input credit.
But actually on month basis input service tax is higher than the output service tax on delivery charges.
Say Input service tax on courier charges is 30,000 and output service tax on delivery charges is 15000 .
In this case are we eligible to take 100% credit of service tax paid on courier charges.
If yes then every month our Input credit will accumulate and can we claim refund from deptt for this accumulated input credit.
CA R SEETHARAMAN
(Expert)
29 May 2017
What ever courier charges you pay you collect either the same amount or higher amount from the customers and where is the question input credit accumulation.
No refund for such mismatch.
No refund for such mismatch.
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