What is INPUT TAX CREDit ?

This query is : Resolved

AMIT (Querist)
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28 July 2010
plz explain me

INPUT TAX CREDIT ?

CENVAT ?

WITH EXAMPLE,

MR. A (SERVICE PROVIDER) RECEIVE SERVICE FROM MR. B OTHER SERVICE PROVIDER OF RS. 10 LACS (906618 + 93381)

nOW mR. A PROVIDE SERVICE TO HIS CILENT MR. X AND CHARGED A SERVICE TAX OF RS. 10000 ON A BILL

SO NOW, MR. A PAID = 93381
MR. A RECIEVE = 10000

NOW 83381 IS CREDIT ???

I M CORRECT OR NOT, PLZ EXPLAIN ME IN DETAIL

Nilesh

Nilesh (Expert)
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28 July 2010 In the above example , you have availed Cenvat credit Rs 93,381 . In order to discharged your output liability ie Rs, 10,000 you can pay this liability ny utilising Cenvat credit. Hence, the unutilised Cenvat credit would be Rs. 83,381/-.

You can refer https://www.dateyvs.com/cenex07.htm for more details

Trust the above useful.

Warm regards
Nilesh

AMIT

AMIT (Querist)
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29 July 2010 i pay Service tax on service , what is it called ??

and when i recive service tax on service , what it is called ??

the techinal terms

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 August 2010 What ever your are paying service tax in out service tax and what ever you are offseting to the payable is called cenvat input on service tax

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