Input tax credit on payment to avail travel services

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Can a Body Corporate using travel services (service tax paid on air ticket and billed on Company's name) to provide a service to a client, avail input tax credit of the service tax paid to the travel agent?

Replies (4)

Yes. A company can avail CENVAT Credit of the service tax paid by it in the course of rendering its services.

Originally posted by : CA Smit Shah

Yes. A company can avail CENVAT Credit of the service tax paid by it in the course of rendering its services.

 

If the ticket is in the name of any employee, how will be the treatment?

 

The general rule allows the service provider to avail input tax credit of service tax paid on input service,if the rate of service tax paid on the output service is greater than the rate of the input service tax paid.  Hence, if we are using travel services to provide the client any service, we can avail input tax credit for the service tax paid against the service tax on the output service.

 

Is it Correct??

Can the service tax component arising on purchase of tickets-rail and air-be claimed for input. Tickets are bought for travelling to and from the clients' place and raised in the company's name?

Can the service tax component in the amt paid towards web hosting be adjusted against the ST payable.

 

Thanks in advance


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