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Service Tax Credit for prior period

abatements 1543 views 2 replies

Hi,

I am working for a startup organisation. We will start operations in Q4 of this financial year. The services which will be provided are taxable under the service tax act. My query is whether the company can get registered as service tax provider today and whatever service tax is paid on services received like telephone bills, etc can be taken as credit against the service tax which would be payable on services to be provided in Q4?

Eg: Service Tax paid Rs.5,000/- on bill of Rs.50,000/- telephone bill

When we collect service tax of Rs.10,000/- on bill of Rs.1,00,000/- invoice issued by my Co. in January whether we can set off Rs.5,000/- above?

Please reply.

Thanks.

Replies (2)

unless the tax liabiliy is established input credit is not allowed.

Originally posted by : U S Sharma

unless the tax liabiliy is established input credit is not allowed.

Agree...

Futher added that you can claim the Small Scale exemption upto Rs.10 lakhs but Cenvat as stated above can be availed only after the taxability is established not before that.

Note : The Service Tax as paid on telephone bills can only be paid if the same is utilised towards providing the services.


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