The company is liable to tax based on MRP valuation ie under 4a.... the doubt was can the company offset the service tax credit given under rent with the excise liability under 4a valuation.... The same can be done under 4 ...but 4a ?
company is not registered under service tax Regards
07 April 2012
You may offset the Cenvat credit earned in respect of Service Tax paid on rent for payment of Central Excise duty assessable under either Section 4 or 4A, there is no bar in availing credit. As far service tax registration is concerned, you need not be registered for payment of Service Tax on rent however your land lord should obtain the registration and discharge the Service Tax on rent paid by you. -laxman
CAclubindia
