What is INPUT TAX CREDit ?

This query is : Resolved

AMIT (Querist)
Follow

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)
Follow

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)
Follow

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)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now