Service tax input

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Shweta

Service

48 Points Posted on 10 April 2008

Hi All

If company is incurring any training cost, whether it can claim service tax input credit?

To illustrate my instance suppose

A software company X is selling products through agent (Y). Y in turn selling product and also providing implementation support and training to end users. Now as per policy of company X, Y can claim training expenses incurred by it. So if Y in turn raising service invoice on X for training expenses incurred by it. Whether X can claim input credit paid by it?

Let me know for any further clarifications

Regards

Shweta

Replies (4)

S.Srinivasaraghavan

Chief Financial Officer and Co

10628 Points Posted on 10 April 2008

If it is in connection with X's business, X can take input credit of ST charged by Y, in its bill on X.

YOGESH SHARMA

PART TIME ACCOUNTANT

24 Points Posted on 12 April 2008

hi, i had clear my cpt in may 2007 and due to some financial reasons til now i am not registered with pcc ii and articleship also but i jion a c.a. firm from last eight months and now i want to get registered in pcc ii and for articleship also, please suggest what is the date from when my articleship is started. can i save my eight months articleship and please also suggest can a c.a. who has doing a job can have any article Thanks & Best Regards, Yogesh Sharma

YOGESH SHARMA

PART TIME ACCOUNTANT

24 Points Posted on 12 April 2008

if it is in nature of of X company's product that training to end users is neccecery to sell the product and training cost is also a part of product,s cost then service tax input can be claimed and if training is only for to sell the product easier or to promote the product then input cannot be claimed.