Taking credit of service tax

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This query is : Resolved

Kislay Prasad Sinha (Querist)

03 August 2010 A service provider was raising a bill of Rs. 90000 every month. It has also taken registration under service tax rule. But it is neither attaching the declaration nor claiming service tax in the bill.
Whether the company receiving the bill is allowed to take credit of the service tax on the gross amount paid to the vendor i.e. on Rs. 90000.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

03 August 2010 For taking credit in the invoice service provider need to mention the service tax amount along with the registration number

Ask your service provider to segregate the bill as invoice value and ST value

Aditya Maheshwari

Aditya Maheshwari (Expert)

03 August 2010 Ask for a proper bill of serive tax showing bifurcation of service tax amount and the gross bill. If the above is not done then service tax credit cannot be taken. Service tax should be specifically mentioned on the bill.

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