Hi All,
Our client giving a Interior design service
Please clarify me whether Service Tax input is claimable on following sarvice availed;
1) ST input on Telephone bills of staff & Internet bill
2) ST input on Professional servise like Audit fee, Tax consultant
And also share the provision or notification for the same.
Input tax can be claimed only in respect of services that directly related to the service provided. Yes, you can claim the input of the same.
Yes, you can take the cenvat credit. The CENVAT credit in respect of input service shall be allowed, on or after the day which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or, as the case may be, challan referred to in rule 9.
Anjali,
Even if input service is indirectly used for providing taxable output servicecenvat credit can be availed. The basic point is it ought to be used for proviidng output service - be the relation or nexus be direct or indirect.
Regards,
Thank u all for valuable suggestion.
CAclubindia
