Input credit

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vendor is providing labour service to our company, he is not charging service tax, his turnover exceeds 10 lakh. can i claim input credit on that particular vendor

Replies (5)

You are eligible to claim Input Serviec Tax only when the Service Provider charges Servie Tax in the Invoice. In your case you cannot avail the Input Service Tax as your Vendor is not charging Serviec Tax in the Invoice.

 

 

Regards,

Devendra Kulkarni

thank you devendra

in addition to above query , as vendors turnover is exceeding 10 lakh  government will ask vendor to pay service tax , since vendor is not charging service tax to my company , amount paid by my company is inclusive of service tax ,can i claim input credit?

Yes. Government shall demand service tax from the vendor even if he has not charged service tax to his customers. The receipts received by the vendor from his customers shall be deemed to be inclusive of service tax and accordingly the service tax liability shall be calculated.

But you will not be eligible to claim the input service tax as service tax is not charged in your bill separately.

 

 

 

Regards,

Devendra Kulkarni

thank u devendra once again , also request to answer my another query.


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