Input credit

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Phalgun

Audit Manager

20 Points Posted on 14 May 2012

Dear Friends,

Kindly clarify this below doubt :

One of my client is running office by hiring a building. He undertook interior decorating work for his Godown affiliated to building. The cost was borne by himself.The bill for interior decoration contains VAT & service tax. Is this eligible for input credit ? Since he is not the owner of the building. Can the expenses be accounted as "Office expenses" or "office maintenance" ? Kindly reply w.r.t "input Credit" defined in service tax rules.

Replies (5)

U S Sharma

glidor@gmail.com

20 Points Posted on 14 May 2012

Originally posted by : Phalgun
	Dear Friends, Kindly clarify this below doubt : One of my client is running office by hiring a building. He undertook interior decorating work for his Godown affiliated to building. The cost was borne by himself.The bill for interior decoration contains VAT & service tax. Is this eligible for input credit ? Since he is not the owner of the building. Can the expenses be accounted as "Office expenses" or "office maintenance" ? Kindly reply w.r.t "input Credit" defined in service tax rules.

you have not mentioned the nature of taxable output service, if the input services are mandatory for providing the taxable output services then only you can take credit, otherwise not.