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Service Tax Input Credit

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Sreesudhan

employee

21 Points Posted on 03 April 2009

Hi,

Can some help as to from when we can claim input credit on serive tax. My case detailis mentioned below.

My company is a service provider. We started rendering our services (sales) from Nov 08. We have paid service tax on our vendor payments from April 08 till March 09. My question is Can i Claim input credit from April 08 till March 09 or should take credit only from the time we have started our services (i.e from Nov). Is there any circular or notification on this.

Replies (1)

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 03 April 2009

Input services credit is available only when the same is used in providing the taxable services. Therefore if you have started provding taxable services on which you are paying the STy from NOV, credit is available only on that. The capital goods used for provding the services ( if central excise duty paid) could be admissible for purchases beyond 1.4.2008.)

If you are availing any abatements then the credit restriction in the notifcation maybe referred if any.