Query regarding Service Tax credit

Dear all,

 

Kindly suggest :-

An indian company providing service to  foreign based company ( in Thailand) and raising Service Invoice after charging Service Tax of 10.30%.

My query ----can foreign co get service tax credit ?

Replies (5)

no, there is no such provision of service tax credit by overseas clients. 

A MANUFACTURING COMPANY CAN TAKE SERVICE TAX CREDIT ON SERVICE PROVIDED BY A SCHEDUALED BANK LIKE BANK CHARHES ON BILL DISCOUNTED,CHEQUE BOOK ISSUED TO COMPANY,FOR MAKING DEMAND DRAFT ETC

Foreign company cannot take cenvat credit from Indian company's bill. But I wonder , why Indian Company paid service tax, as export of service is exempted.( subject to conditions).

Sir,

 

Can u please tell me say - Bill raised and service tax  payable during  the month is Rs.20,000 and Cenvat claimed during the month is Rs. 25000.00 . Is it compulsory to pay the service tax or you can adjust against Cenvat Credit. Secondly excess credit can be utilised further?

Its very urgent, sir

Thanks

 

Sushant

 

Yes you can utilize it if you not taking benefit till turnover of 10lac….

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