Input tax credit of service tax

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sureshraj

employee

167 Points Posted on 03 July 2015

Dear CCI Members,

Greetings for the day!

with reference to above title i have doubt on input tax credit of service tax.

For Ex, X & Co(Service reciver) has paid service tax to Y & Co (service provider) and X & Co providing some other services to Z & Co and collecting service tax on those services.

My question is in normal circumstances X & Co can cliam input tax credit of service tax paid to Y & Co or not?

If Yes he suppose to pay difference amount between output libility i.e. services provided to Z & Co and Input tax credit on Y & Co ?

Is there any provision for not eligible of Input tax credit of service tax?

Thanks in advance.

Replies (3)

Cenvat cedit is not allowed when any input service is used primarily for personal use or consumption of employee refer Circular No. 943/04/2011-CX dated 29/04/2011. So as far as input services are used for business purposes we can claim Cenvat credit of service tax paid.

CA Tarun Jagdish

8893495263

147 Points Posted on 11 July 2015

You can claim input credit... In case of reverse charge mechanism first we hv to pay and then claim credit

karan jit singh

Consultant

1148 Points Posted on 12 July 2015

Originally posted by : v.suresh
	Dear CCI Members, Greetings for the day! with reference to above title i have doubt on input tax credit of service tax. For Ex, X & Co(Service reciver) has paid service tax to Y & Co (service provider) and X & Co providing some other services to Z & Co and collecting service tax on those services. My question is in normal circumstances X & Co can cliam input tax credit of service tax paid to Y & Co or not? If Yes he suppose to pay difference amount between output libility i.e. services provided to Z & Co and Input tax credit on Y & Co ? Is there any provision for not eligible of Input tax credit of service tax? Thanks in advance.

In normal circumstances X & Co can cliam input tax credit of service tax paid to Y & Co.

He suppose to pay difference amount between output libility i.e. services provided to Z & Co and Input tax credit on Y & Co