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

Service tax calculation

Murugesan Palanisamy (Accounts Executive) (64 Points)

29 September 2011

Dear all,

When paying service tax, can we take any credits,

ex: service tax payable amount is 5000.00 and we paid service tax amount for telephone, travelling etc.. is 2000.00 what amount we need to pay ?

Thanks

Reply
Follow
Share

3 Replies

ACMA Obulirajan R (M.Com, ACMA) (1119 Points)
Replied 29 September 2011

If the assesse is the service proivder/Manufaturer/Manufacturer service provider, then you can take credit of all service tax which you have paid for all input services.

SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20168 Points)
Replied 29 September 2011

Originally posted by : OBULIRAJAN R
	If the assesse is the service proivder/Manufaturer/Manufacturer service provider, then you can take credit of all service tax which you have paid for all input services.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 September 2011

service tax payable for "providing taxable output services" are 5000/-

you are availing input credit for "input services" 2000/-

so the balance of 3000/- is payable in cash.

Note:

1)reverse mechanism service tax liability can not be set off with input credit, but payable in cash only , example GTA service tax.

2) Input credit is available on only "input services" which are used directly in providing "taxable output services" / "taxable excisable goods clearance"

3) if the assessee has availed any value based exemption / abatement either in service tax or in excise, then no input credit admissible.