Input credit on service tax

Sir,

In this reagrd you recd. taxablew services under RCM and you have to pay service tax on such service on partial or hole basis.

on abate value your liability @ 40 % on total taxable value on (Receipaint).

non abate value provider 60% and recepaint @ 40%.

In any case receipaint liability only 40%, and

service provided raised excess duty on your end so plz discussed with such service provider.

Sir,

Thanks for your guidance.

But it is not clear to me sir. What I am doing not say example :-

Basic            Output

1000              124

300                 37 ( Input)

I am depositing ST 87/- is it correct ? or I have to calculated like that (124-15).Pls guide me

Jayanta

In this regard both tax i.e. input or output tax is @ 12.36%. But I am saying that such services liability in recipient 40% only.

E.G.

You will be recd. such service i.e. Rent-a-cab Rs. 100. Then your liability will be raised under RCM, 40% only i.e. Rs. 40 @ 12.36=4.944% only not more excess or not more less then.

Thanking you,

Dear sir,

Yes. Definitely you can avail such input service credit to pay output service tax. Because, you incur such expenses for providing output service. Hence it is clear that, this expense is incurred for official purpose, it qualifies as input service credit.

Thanks