Sir, I Am Vinod, Exemple 'Restaurant Service" Has 60% Abatement & 40% Taxable Means @ 5.80% Taxable On 14.5% , My Doubt is Can we Set off Against Payment ,Who Pays Regular Tax @ 14.5%, If Available Pls Tell The Service Tax Section.
I Want Immediate Reply..Plsss
You can alwasy claim the credit and set off against the payable as like any other service if you are at normal rates. Only if you avail abatement , you have to mention the same while filing service tax returns and ofcourse you can not claim the credit.
Thanks,
Suri
I did not understand , your answer made me bit confuse.
Sir.
Normal tax payers (who pays 14.5%) eligible to take restaurant service output tax (5.80% on 14.5% 60% abatement 40% taxable ) in our accounts as input tax to set off agst our payment. Boz somebody told can't take abatement value as input who pays normal service tax.
Pls clarify input eligible or not..?
CAclubindia
