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set off of tax credit.

This query is : Resolved 

12 November 2010 we have one problem about service tax credit refund, one of the our client (co-operative housing society) is renting space for mobile tower, and collected service tax thereon. they also paid huge amount of service tax on major repair work done in the society. they have paid service tax on rent collection without claiming the set off of the service tax credit on repair bill, whether they are eligible to set off tax credit and how? now they can claim this tax credit as refund? whether there is any case study, rule or circulars thereon?
please anyone help me....

13 November 2010 One can claim set off of service tax credit with service tax payable only if service tax credit is on such services which are used to provide output service. There should be nexus between input and output services. In the given case i could not found nexus so accordingly u can not claim service tax paid on repairing work of society with service tax payable on rent collection.


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