Input tax credit on service tax

Tahseen Tabassum (CA-FINAL) (644 Points)

25 April 2009  

A Company was providing service of Supply Installation Testing & Commissioning which have an abatement of 66% on the gross value of the service provided, on these tax liability the company cannot avail the credit of input tax. The liability comes to Rs.44,431/- the co. have to deposit this but it has taken the set-off against the input tax credit standing from the last quarter from the other type of services provided by him.

I want to know whether the company is right on doing so. Please can anyone explain this to me i will be thankfull.