Service Tax - input service credit & output service tax

Dear Mr Sathis,

If you know VAT input credit of any state, then it is easy to explain to you about Service Tax input tax credit.

The Service tax output tax payer (assessee) can claim input credit of all his input services and adjust the same in the output tax.  Here, cross utilisation of service is also possible.  Cross utilisation means, input on capital goods, and input on Central Excise can be taken on eligible service/goods.

For E.g  Photography service, or Authorised Service station service: In these cases, capital goods is compulsory to get the works done to pay the service tax on the output service.  So, the service tax assessee can adjust the Excise Duty of service paid on the input and deduct the said amount while paying the out put tax.

I hope this will suffice your question.

regards,

R.K RENGARAJ M.COM, M.BA., LLB

Originally posted by : sathis
	Dear All, Explain  Detail  - Service Tax Input service credit and output service tax   Regards S Sathis kumar

Input service means any service used by a provider of taxable service for providing an output service. Output service tax is the service tax charged by provider of taxable service on his bill. The output service provider can utilize the service tax on input services and pay the balance amount.

Dear All,

We are one of  the pvt ltd co and charging service tax on maintenance charges and we are paying the maitenance charges to others. Suppose we are paying the mainteance charges is Rs.1103/- (incl. of st) and we are charging to our customers are Rs.882.40/- (incl. of st) in this case can we get the refund of st Rs.21/- or not, pl. explain

regards

kishan vb

no refund of excess saervice tax input, but u can carry forward the same for next period.

Dear Mr. Balkishan,

From the above query of yours, it seems that the service tax paid on your mainteance charges is not directly related to your output mainteance charges billed to your customers.  i.e. it is not being purchased by you for the purpose of selling.  In that case you can adjust your output service tax liabiltiy with the Cenvat credit & the balance has to be carry forward.

But if the mainteance charges provided by others to you is directly being sold for example A billed to your the site no XYZ mainteance charges of Rs 1103/- & you billed the same to your customer as Mainteance charges for the site XYZ Rs 882.40 in that case, you cannot carry forward the Cenvat credit to the next month.  Since as per the service tax/Excise law, the free goods or services is also liable for the levy of svc tx or excise & at the time of preparing your ST-3 return you have to mention the billing amt as Rs 800 & in the next row or colum for Value equalent to consideration of money the balance of your cost (1000-800) to be filled i.e. Rs 200/- & the service tax liability has to be show as 103 which can be paid through your Cenvat. 

Just chk the ST-3 return you will find the column.

Hi......... Sathis

Credit in your case shall be avaiable bcz ur input service are falling under rule 6(5) of CCR irrespective of that how much portion of that input service are used.

But situation might be changed from this F Y.

Thanks

Lalit

Mr Balakrishnan,

The excess of CENVAT Credit will not be paid in cash except in the case of the Exporters or service provided to SEZ etc.,  For that there is a claim form to be submitted to the department.

In your case, this month excess can be carried forward to the next month.  The idea behind allowing set off to the assessee is to pay output tax on your margin.  So, in any case,  normally, there cannot be continous excess credit available for the assessee.  There are restriction to avail the CENVAT credit as the definition for INPUT Tax is changed from this financial year.  One has to refer the rule and its definition before availing the Input tax credit.

regards,

Rengaraj.r.k

Dear Sir,

Anyboddy can give refrence or link where it is stated that excess input cenevat service tax can be carryforward to next financial year.

It will be highly appreciate anyone help me out.

best regards,

Balram

Balraam..!!!

There are no such direct provision... but at the same time there are some provision which stated that credit can be utilise utilise any time means there are no time limit for utilisation of cenvat credit.... that shows.. excess input service tax can be c/f to nxt year,,,,,,,,!!!!!!!!!!!!!

Dear sir,

thank you very much.

hello !

suppose there is service tax input  Rs. 30000 & out put is just Rs. 2000 so we can adjust it with our input but what about another Rs. 28000 ? can we add it next input and take benefit ?

hi sir 

 i actuallu know about the service tax credit can be taken in the next  or follwing month?

just example like 

output service tax for the month of March 2013  Rs.365000

input service tax credit of Rs. 465000 for the month July 2012 to March 2013 Period

My Question Is it sett -off  against output service tax for the month March 2013 ? 

hi sir 

 i actuallu know about the service tax credit can be taken in the next  or follwing month?

just example like 

output service tax for the month of March 2013  Rs.365000

input service tax credit of Rs. 465000 for the month July 2012 to March 2013 Period

My Question Is it sett -off  against output service tax for the month March 2013 ? 

hi sir 

 i actuallu know about the service tax credit can be taken in the next  or follwing month?

just example like 

output service tax for the month of March 2013  Rs.365000

input service tax credit of Rs. 465000 for the month July 2012 to March 2013 Period

My Question Is it sett -off  against output service tax for the month March 2013 ?