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Credit of service tax paid

abatements 190 views 1 replies

Devendar Chawla

Service

74 Points Joined September 2014

I need openion in this case.

Service provider(A) collects Service tax from the service reciepent(B).Rs 50000/-

at the same time service provider(A) pays service tax to another service provider(C) Rs 20000/-

How much service tax has to be paid by A to the govt? if the service code is same.

How much service tax has to be paid by A to the govt? if the service code is different.

Can some one help me

Replies (1)

Nikhil Sharma

Government Service

539 Points Joined July 2015

Credit of service tax doesn't depend upon the service code. It is available if the service classifies as input service as per Rule 2(I) of cenvat credit rules, 2004.

So if the service on which you paid 20000 service tax is an input service, then tax credit will be available and 30000 will be required to be paid to government.