Service tax credit

Sir, I am a Real Estates Agents, collecting brokerage along with Service tax. I have paid Service tax against my mobile bill can i sett off against ST payable.   

Replies (2)

Yes. You can avail the set off of Service Tax from the payments made of your Mobile Bill payments.

Please refer to para No.8.3 of Circular No.97/8/2007 dated 23.08.2007. the same is produced below:

"8.3      A doubt has been raised regarding admissibility of CENVAT credit on service tax paid in respect of mobile phones. In the Service Tax Credit Rules, 2002, it was prescribed that credit of service tax was admissible only on telephone connection installed in the business premises. A clarification to this effect was also issued vide circular No. 59/8/2003-ST, dated 20.6.2003, in the context of the Service Tax Credit Rules, 2002. However, in the CENVAT Credit Rules, 2004 no such condition has been prescribed. Therefore, w.e.f. 10.9.2004, credit of service tax paid in respect of mobile telephone service is admissible, provided the mobile phone is used for providing output service or used in or in relation to manufacture of finished goods."

The link is given below:

https://www.servicetax.gov.in/circular/st-circular07/st_circ_97-2k7.htm

 

Hope this clarifies your doubt.

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