Input credit in Service tax

A Kiran Kumar (Accountant) (13 Points)

10 May 2007

Hello friends,

I am working in Innovate Software Solutions Pvt Ltd Bangalore.We are newly registered under Service tax act.We are registered as a AMC service.How can I calculate Input credit adjustement service tax.
Pls give use ful links to check....my ID kiran @ innovatesolutions.net

Thanks & Regds

A Kiran Kumar

Reply
Follow
Share

1 Replies

Skamul (19 Points)
Replied 10 May 2007

Input Tax Credit (ITC) can be taken on all input services and capital goods (on the ED portion). However, if your company renders both taxable and non-taxable services then ITC will be restricted to 20% on the tax payable on the output service. For example, if your company is a software development service co., then this resctriction will apply since there are two services (one software development, which is exempt and another AMC, which is taxable).

Amul