Service tax

Notifications 1023 views 3 replies

Nisha

Excise

35 Points Posted on 20 July 2012

Sir,

I am confused to read Notification No. 33/2012 Services Tax Dt. 20th June 2012 i.e. i asked this question pls help me.

we are manufacturer of valves & spare parts & services provider of maintains & repairs but we are not cross the limit of services tax of Rs. 10 lacs. So, my Question is can we take credit on input services received & this credit utilised for CENVAT credit or not. I am

Replies (3)

Yajendra Adhikari

Chartered Accountant

334 Points Posted on 20 July 2012

Credit of tax on input service received for manufacture of goods is allowed.

But, if receiving of service is for providing of service, it is not allowed.

Ajit kumar Dubey

Taxation Manager

637 Points Posted on 20 July 2012

Yes you can take the CENVAT Credit on input services, irrespective of the fact that your turnover has not exceeding Rs 10lac in terms of exemption provided under Service tax for small service providers.

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Posted on 22 July 2012

HAI

AS UR DOUBT IS CONCERNED PLEASE OBSERVE EXAMPLE

U ARE SMALL SERVICE PROVIDER,SO U HAVE EXEMPTION OF RS 10,00,000 FOR NON EXEMPTED SERVICES

U PROVIDE SERVICES WORTH rs9,50,000,AS UR NON EXEMPTED SERVICES DOESNOT EXCEED 10L U R NOT LIABLE TO PAY SERVICE TAX AT THE TIME U BILL UR CUSTOMER

WHILE PROVIDING SERVICES, U UTILISE SOME INPUT SERVICES WORTH rs10000 AND PAID SERVICE TAX OF rs1030

NOW THE ST PAID rs1030 CAN NOT BE AVAILED AS CENVAT CREDIT

SO IF THE SERVICES IN WHICH U HAVE BEEN PAID SERVICE TAX ARE TAXABLE,THEN AVAIL CENVAT CREDIT OF ST PAID ON INPUT SERVICES.

BUT U CAN AVAIL ST PAID ON CAPITAL GOODS IRRESPECTIVE OF WHETHER SERVICES U PROVIDE ARE TAXABLE OR NOT

SO CENVAT CREDIT OF CAPITAL GOODS WILL NEVER LAPSE