Service tax input

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Sumanta Das Gupta

Accountant

129 Points Posted on 27 February 2012

Dear Friends,

I have come across this problem while working for one of the clents of our Firm. Please answer asap if possible :

The client company is a an engineering construction company having sites all over India. The client has deducted service taxes against bills of it's subcontractors throughout the F.Y. 2011 - 2012 but has not claimed input credit for the same in it's payments to subcontractors for Service Tax over the year.

Question is : Can the client claim the previous input credits (since April, 2011) against amounts it will pay now i.e., in March 2012 ? The total unclaimed input credit amount is around Rs. 3 Lakhs.

Thanks and regards.

Replies (2)

Prasad

Sr. Manager

625 Points Posted on 27 February 2012

Hi Sumath In my opinion your client should claim the input credit. Any unutilised Input credit can be carried forward to next FY.

Saurabh Maheshwari

B.com ACA

4340 Points Posted on 27 February 2012

You are just required to revise the ST Return for First half of FY11-12 and show the input ST paid till that period and,then you can carry forward that credit to second half . So far as credit attributable to month-Oct to Feb,you can adjust that in March (along with the adj of c/f credit of 1st half) because you have not filed return for Second half ,as such you can simply show the credit in that return and nothing else. Anyway nice query.