input credit on common services

2753 views 6 replies

Vbsuresh

13 Points Joined March 2007

Sub : Availing of service tax paid on common services in a trading business

I am working in a retail company. Apart from the sales, there is portion of other income which includes display charges collected form vendors towards promotion of their products by displaying in the retail out lets.This will attract the service tax under Business Exhibition services.

The company is availing different kind of professional, Advertisement, Telephone, Contract Labour, Business Promotion etc.. services and paying the service tax on all these kind of expenses.

Now i need a clarification regarding availing the credit of Service tax paid against the service tax payable on display Charges. Can the Company claim 100% input Credit of Service Tax paid on different kind of Expenses? If not what is the alternative for the company to avail the 100% input Tax.

Pl. let me know with relevant sections of the Service Tax Act as soon as possible as this is very urgently required.

Thanks,

Suresh ACA
09391905096

Replies (6)

CA. Naveen Jain

Practice

323 Points Joined April 2007

As per my knowlege the retailer can avail the input credit on service tax paid by him on different bill payment

JAY PRAKASH PATIDAR

69 Points Joined June 2007

my qery. service tax paid on bill of electricity telephone , mobile , it is posible to credit of this tax paid ? pls reply and also list of services which is credit is availed /

JAY PRAKASH PATIDAR

69 Points Joined June 2007

my qery. service tax paid on bill of electricity telephone , mobile , it is posible to credit of this tax paid ? pls reply and also list of services which is credit is availed /

JAY PRAKASH PATIDAR

69 Points Joined June 2007

sir pls sujjest me list of services which is credit of tax is availed thanks

chandrashekara.R

CA Final

55 Points Joined June 2007

service tax paid by the company towards display charges can be claimed 100%. in case of objection raised by the department.it is a part of litigation as of now and can be claimed .

bharani

46 Points Joined June 2007

FIRST OF ALL, YOU SHOULD KNOW THE RULES OF CENVAT CREDIT ANY INPUT TAX CAN BE ADJUSTED AGAINST THE TAX PAYABLE ON TAXABLE SERVICES OR CAN CLAIM THE INPUT TAX REFUND YOU NEED TO SPECITY VERY CLEARLY THAT ANY INPUT CREDIT ON ANY EXPEDITURE, SHOULD ELIGIBLE TO CONTRIBUTE TO THE SERVICES YOU RENDER ANY EXPD NEEDS TO RENDER THE SERVICES, THEN YOU CAN CLAIM THE INPUT CREDIT EITHER SETOFF/REFUND PLEASE SEGREGATE THE TAXABLE AND NON TAXABLE SERVICES AND ALSO EXPENDITURE FIRST REGARD BHARANI