Input service tax credit available to Outdoor Caterer in case of Abatement
Mr C is outdoor caterer providing outdoor catering service in the Marriage hall and paying service tax on 60%(Abatement 40%) of total value of Service provided. Marriage Hall owner Mr. H does not allow any other Caterer to provide Catering Service in his hall other than Mr. C. In return Mr. H charges Commission for giving exclusive catering rights. Mr. C requires to pay Commission Plus Service tax to Mr. H
Querries:-
1. Whether Mr C can claim credit of Service Tax Paid on Commission ie. Input service?
2. If yes, Full credit will be available or proportionate credit as per rule 6 of Cenvat Credit rules?
3. Whether similar treatment to be given in case of Capital Goods?
Thanking in Anticipation
CAclubindia
