Dear All,
Our company has taken different projects in AP and we are providing different categories of Services like Erection & Commission, Work Contract Services, Constrcution Services,Maintenance & Repair etc.
The Service Tax department people contention is that adjustment of output service tax liability and Input Service Tax credit can be done within the project only, i.e., Input Service Tax Credit related to one project can only be adjusted with output service tax liability of that particular project and cannot be adjusted with other project output service tax liability.
In earlier period certian Input credits had been taken and now we have excess input credit as compared to output service tax liability in certian projects. But the Service Tax Department officers are not allowing the inter project adjustment of the Input Service Tax Credit.
Please suggest considering the fact that we are keeping separate record for exempted services and the above matter is related to taxable services only.
Regards.
CAclubindia
