Availability of Service Tax INput Credit on INterest charged

We have taken laong term Secured loan from our bank towards fulfilling the Working capital Requirement. Interest on the loan charged by bank & Service Tax levied on that. So, the service tax which we paid on interest, can we claim the service tax amount as input credit

 

 

Replies (4)

Service tax paid on input services which used for providing the output services is available.

Yes. Banking service is an input service. You are eligible for credit.

If the bank has not charged the service tax separately, but it has debited account by an amount which is inclusive if service tax, then we can take credit on the amount or not

Seek details of service tax charged from the bank, and take credit of that amount.

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