service tax

Yes you are absolutely right.

First compute the output tax liability

then adjust the input tax credit against output tax payable and pay the balance output tax payable if any

For Ex.

Out put tax payable is Rs 100

Input tax credit available is Rs 50

Balance payable (Net tax payble after adjustment of input tax )  Rs 50

Hope the above clarifies

Originally posted by : M.D.Ram
	Yes you are absolutely right. First compute the output tax liability then adjust the input tax credit against output tax payable and pay the balance output tax payable if any For Ex. Out put tax payable is Rs 100 Input tax credit available is Rs 50 Balance payable (Net tax payble after adjustment of input tax )  Rs 50 Hope the above clarifies

Yes , he is right