Input credit service tax against Bank charges

Kindly let me know how to claim input credit for bank charges, do they require some document from bank or bank statement will suffice.

Replies (3)

Dear Pranay Jain,

Cenvat Credit IS ALLOWED ON THE BASIS OF CENVATABLE INVOICE. (RULE 9 CENVAT CREDIT RULES 2004)

CENVATABLE INVOICE SHOULD CONTAIN FOLLOWING INFORMATIONS:-

i)         the name, address and the registration number of such person;

(ii)        the name and address of the person receiving taxable service;
 
(iii)       descripttion, classification and value of taxable service provided or to be provided; and
(iv)       the service tax payable thereon.
 
RELAXATION IN CASE OF BANKS
Provided that in case the provider of taxable service is a banking company or a financial institution including a non-banking financial company, or any other body corporate or any other person, providing service to a customer, in relation to banking and other financial services an invoice, a bill or, as the case may be, challan shall include any document, by whatever name called, whether or not serially numbered, and whether or not containing address of the person receiving taxable service but containing other information in such documents as required under this sub-rule.

SO IF BANK STATEMENT CONTAINS FOLLOWING INFORMATION THEN IT WOULD BE SUFFICIENT OTHERWISE FOLLOWING INFORMATION SHOULD BE OBTAINED FROM BRANCH MANAGER ON THE SEPARATE DOCUMENT (PREFRABLY LETTER HEAD)

!) NAME, ADDRESS,& SERVICE TAX REGISTRATION NO. OF THE BANK

2) NATURE OF SERVICES...(LIKE DD CHARGES, ETC)

3) AMOUNT OF SERVICE TAX 

thanks amir ji

for sharing information

Normally the bank challan does not indicate servic etax. Therefore a quarterly / monthly certifcate maybe obtianed to cliaim the credit on ST on bank charges.

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