Credit for service tax paid for input services

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Our client, a co-operative Bank,  was required to pay service tax on rented branch premises for past 5 years, pursuant to the finality of leviability of service tax on commercial rented premises.

Service tax for all services ( all income/charges other than interest) rendered by relevant branch for all the years was paid over, during relevant years.

We are of the opinion that the client can take credit for the entire amount of service tax paid (for all past years), .against its present and continuing liability of service tax on taxable services (again all income/charges other than Interest).

Are we correct?

Replies (1)

The definition w.r.t. the Input services has been amended from 01.04.2011, to include only those services that have been used to provide the output services.

You may refer to the Rule 6(3)/(3A) of CCR, 2004 and the definition of exempted service, and further the profit and loss account of the bank.

You might arrive at a ratio for claiming cenvat, but believe me it is always advisable to take an expert opinion in such case.


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