01 November 2010
hi... company x provides services two kind of services 1- banking and financial services and 2- business support services, business support services is minimal in nature however the banking and financial serices amount is higher relatively; my question is whether input credit of service tax received in respect of all business expenditures can be taken in respect of both the services OR it can be taken proportionately in them,
OR CAN A COMPANY TAKE CREDIT OF SERVICE TAX IN RESPECT OF ANY DAMN GENUINE EXPENDITURE OF BUSINESS , IF THE COMPANY IS PROVIDING THE SERVICE OF BANKING AND FINANCIAL SERVICES???
you can avail the cenvat credit & adjust the input credit any kind of service which is registerd under service tax net
you need not proportionately distribute the input. because it is single establishment note: you can avail the cenvat credit not more than 20% of the out put services.
11 November 2010
dear take care that the input service falls squarely under the definition of input service received in or in relation to the output service. not all the business expenditures on which you have paid service tax are eligible for service tax credit.
CAclubindia
