LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Service tax Credit on Recruitment charges

Ranganath AAGJ (CA Final Student) (147 Points)

09 June 2008

Dear Sir..

we have a one software company . are we eligible to take service tax credit on recruitment charges paid to recruiting agent.

Reply
Follow
Share

5 Replies

MONISH BHALLA (DIRECTOR) (5217 Points)
Replied 09 June 2008

yes you can take the cenvat credit

Ranganath AAGJ (CA Final Student) (147 Points)
Replied 09 June 2008

thank u very much sir. wat abt on Travelling expenses paid to the travelling agent for pick & drop of Company's employees from Res to Office and Office to Res.

DEEPAK KUMAR TIBREWALA (profession) (101 Points)
Replied 09 June 2008

yes u can take

cashekar (Chartered Accountant) (133 Points)
Replied 10 June 2008

we have a one software company . are we eligible to take service tax credit on recruitment charges paid to recruiting agent.

Answer:

If the services taken fall under the input service definition then you can take credit with regard to the same.the defintion of input service states that 'any service (i) used by a provider of taxable service for providing an output service .....

So you can take credit with regard to service tax paid on recruitment charges paid for software development provided the personnel are used to produce some software.