Service tax query

Queries 998 views 14 replies

We are in printing business and have our own premises for manufacturing. Apart from printing business in the premises we have given some area of the same premises on rent to an fmcg company and collect service tax from them.

We also give service tax on repair & maintenance of machineries, phone bills, freight inward , freight outward, labor charges etc.

My question is that whether we can take the credit of our business stax to write off the stax of rent of the same premises.

If not, then can we go on taking the credit of the service tax paid on business activities and whether it will go on adding or can we apply for refund anytime.

Replies (14)

yes you can set offf

no credit is available to you...... because there is no any relatioship of input service with output service....

No where in service mentioned that one to one relationship is required. So you can avail service tax
Yes u it is not vat that u cn claim input for goods u r selling. So as service tax rules u can take credit of any service. You cant take if u have to pay st in reverse charge machnism
Yes. One to One correlation is not required. Therefore set off is available.
Jeetendra is right because there is no relationship between your product and rent. So you cannot take credit
I think you shall get benefit set off ...
Hello, I think this query should help you. When your services are not related/interconnected, you can avail set off only in the circumstances mentioned by Mr.Ajay Kumar /mobile/experts/details.asp?mod_id=881645T
you can claim service tax input on same number under reverse charge mechanesim.
In your case no credit of st can be claimed

credit is available only of input service.... where service does not cover in definition of input service then there is no question of credit.

as per ccr rule..... "input service" means any service,-

(i) used by a provider of taxable service for providing an output service;

 

and here wheather input service tax paid on frieght... telephone bills etc are used for providing output service  ( rent).......

this is the logic

"input service" means any service,-

(i) used by a provider of taxable service for providing an output service; or

(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,

and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

and hence you cannot claim setoff and also you cannot claim refund of the service tax paid as your are not exporting your services

Actually there is no Service Tax on Printing as it is exempted under job work process.
This is a weird situation.... Some are saying for and some are saying against........ What to expect?


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