Service tax few queries

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krishnakumar

Compliance -Manager CWA

92 Points Posted on 25 February 2013

Can Anyone reply to my queries?

1. Input credit whether available for audit fees/professional fees – ? On what situations credit is not available?

2. Whether input credit is available when there is both VAT and service tax sale / what is the position when we have manufacturing and trading as well?

3. Are there any Input credit restriction on certain items like telephone bills, taxi hire charges, rent etc.,?

4. Any specific service for which there is no input credit available or what are the criteria to be satisfied before we can avail Cenvat credit?

5. Input credit on Reverse charge - Which are the services on which we need to pay service tax under reverse charge and how to avail Cenvat credit on the same?

6.Input credit refund. What are the scenarios in which we can claim Service tax refund and what are conditions which need be satisfied? ( we have few clients like who are exporting services and are paying service tax for services which is utilized to export of services )

Replies (2)

Prabhat Kumar

Advocate & Consultant

1820 Points Posted on 25 February 2013

Credit of input or input services are available to avoid cascading effect of taxes.Being so credit of input is available if the same are used in manufacturing of final goods or in providing output services,Now parawise reply is as under:

1)Auditing and other professinal activities are included in definition of input services,so you can take credit if the same are used and utilised in your manufacturing process.

2)Only credit of Service Tax is available.

3)There are judgements that you can avail the credit on these iteams provided these are used in manufacturing directly or indirectly.

4)There are no as such list in my knowledge but the basic line is the input or input service must be related with manufacturing or output service.

5)The list is available in Service Tax Notification No:13/2012.

6)For claiming the refund you have to show that these were used in Export.