How to adjust ITC on input services?

Hi Freinds,

My client is given two taxable services (i.e. Information & Technology and Repair & Maintanence) and claim input tax credit on input services, So please tell me ITC to be first adjusted against which service.

 

Kamal

Chartered Accountant

Replies (4)

NO matter ....u have specified sum of ITC with u...supose rs. 100....on the basis of ur purchases

 

adjust it with any output service tax....how does it matter...?..

 

ur this ques wud be relevant in setting of capital gain with exemption available under section 54 or 54 F.....

 

ITC is the tax referred as VAT, not of service tax.

cenvat credit accumulated under CCR 2004 can be set off against output tax ( service tax or excise) provided the assesee has not opted any exemption or abatement.

to qualify for cenvat credit, the credit is available on 1) input services, which are directly used in providing taxable output services, 2) capital goods used for providing such taxable services ( definition of capital goods are detailed in CCR 2004)

The concept of cenvat credit for ST is that eligible input services are accumulated in one basket and utilised against any taxable service. There is no one to one corelation under cenvat credit.

Can be used for either of the services.

Thanks!

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