Service tax input credit

A Co & B Co are sister concerns.

B's telephone bills are paid by A.

Telephone connection is in the name of B Co and the payment is made by A Co.

By this A's name appears in the bill.

Who is eligible for the claiming of input credit?

I refered in one of the site wher it says" service tax credit in  respect of telephone connection can be availed only if such telephone connection is instyalled in the premises where output service is provided"

Is this condition enough for claiming credit.?

Replies (6)

Yes can eligible to cenvat credit there i no such condition that  telephone should be on the name of compay,

one company can distrubut the credit on input service to there sister concern but total distribution should not exceed the total amount

As long as the input service is used in the provision oftaxable services credit wouldbe avaialble. However there maybe disputes. It maybe better that the billing co is rectified in future.

hello everybody

there is a company which received advance (in some cases) in 2 or 3 installment for his services but bill issued after received 100% payment  

now when service tax liability arise when we received advance or after issuing bill against that?

well service tax vl be liable from the date of receipt of payment, doesn't matter whether itz as adv. or else.

Manjari is right.

Thanks for reply.........

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