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Set off of output tax in offshore services with input tax

Queries 1136 views 1 replies

Sunil Kumar Pattnaik

Mgr. Finance

42 Points Joined February 2008

We are power construction company having head office at china and a branch in India. We have input credits on the services rendered to us by our subcontractors and we also provide services from outside India ie., from china. Is it possible to set off the output tax generated from services from china to India with the input tax generated within India.

If some one can solve my query, also please send me the notification alongwith the answer.

mail me at sunilpattnaik @ in.com

Regards

Replies (1)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

Dear Sir,

The reciver of service who is made liable for the payment of service tax is not eligible for the credit set off. However if he/she also provides taxable services /pays excise duty then he is eligible to take the credit of the same which canbe utlised and if exports exist ( as in your case possible) then the refund of the same can be claimed.