Can we take the Input Credit of Service Tax paid on Franchisee Fees paid? If yes, when could we take the credit of the same - whether the credit of whole amount could be taken now at once or it has to be taken in instalment in 5 years when we will write off the franchisee fees over this period?
Yes.credit can be taken as the fee has a direct nexus with output services provided by you...you couldn't have provided the output service without taking such franchisee...
There is no such provision for deferment of credit under service tax law...can be availed within one year of invoice and can be utilized without any time limit..
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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