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Input services credit

K Venkatraman (Service) (125 Points)

07 June 2014

A company is availing input services tax credit relating to telephone bills, manpower supply bills, etc. However it had not registered with Service Tax Authorities the categories of services on which it is availing input services tax credit. What is the recourse available to the company? Will service tax authorities levy penalty? Can registration be done now with retrospective effect?Please advise.

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3 Replies

N.VENKATARAMAN (FINANCIAL CONSULTANT) (56 Points)
Replied 08 June 2014

Registration cannot b done retroactively. Company will have to pay back the utilized vale of input with interest and penalty

Gangatharan (Partner) (108 Points)
Replied 09 June 2014

You dont want to register with ST authority for availing ST input credit. You can avail ST input credit on telephone bills & all..

aishwarya s raghavan (student) (224 Points)
Replied 09 June 2014

Dear Sir,

Availing service tax input credit has got nothing to do with being registered for that particular service. Hence, you can avail service tax paid on such input services. Only one condition is that it should not be specifically excluded from the definition of input service.