Service tax input utilisation.

Yes you can adjust the same in your output tax.

Thank you so much Mr. Parihar.

Also, what about the service tax we are charged on Mobile & Telephone expenses, consultancy services, etc., billed in the name of the Company.

Can those service tax be also considered as Input Service Tax for adjusting with output service tax?

Thanks in advance for your sincere effort.

Best Regards,

Sanu Bhagat

do you have to pay service tax on frieght under REVERSE CHARGE??

CENVAT credit can not be utilized for discharging service tax liability under reverse charge mechanism (RCM). From your query it apprears that your company is the recipient of freight service and discharging service tax under RCM and hence, CENVAT credit of advertisement service can not be utilized for payment of service tax on GTA.

You may utilize the CENVAT credit against your excise duty liability or service tax liability (as a output service provider). Further, ST rate of 15% comprises of 3 components i.e. 14% ST + 0.5% SBC + 0.5% KKC. CENVAT credit of SBC is not available and CENVAT credit of KKC is available to output service provider only.

Hope the above clarifies.

@ Mr. Shubham,

Yes, its paid under Reverse Charge.

@ Mr. Vipul,

Thank you so much for a detailed explaination.

So, If the comapny manufactures goods, then the payable excise duty can be adjusted with the Input Service Tax received on Advertisement expenses?

Yes. Advertisement expense is an eligible input service. Please refer rule 2(l) of CENVAT credit rules, 2004.

UNDER THE MECHANISM OF REVERSE TAX , AVAILING INPUT TAX CREDIT IS NOT ALLOWABLEUNDER THE MECHANISM OF REVERSE TAX , AVAILING INPUT TAX CREDIT IS NOT ALLOWABLE