19 April 2016
Sir, My question is can an individual get tax credit benefit for tax paid by him while getting the taxable services and Vat or CST paid by him on purchase of goods.
In fact everyday we are getting the invoices/bill of taxable service and goods containing the tax amount, shown separately on the face of the bill or invoice, for example telephone bill with service tax and food grains purchases bill have VAT paid. My only question is that is an individual can get ANY benefits of tax paid by him. (under any revenue law) for example while filling his ROI or payment of Income tax and some other taxes.
19 April 2016
Unfortunately all benefits of input credits i.e. taxes paid on goods purchased and services received are governed by the respective statutes and not Income Tax Act, 1961. To avail of Input Credits one has to be an assessee under the relevant statute. Therefore no credit is available to individuals on VAT and Service Tax paid on various invoices, since the individual does not provide any output service or sell commodities generating Output VAT. Only deduction you get are for professional tax paid - from salary and / or business income.
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