26 August 2010
My client is a dealer in passenger car vehicles.thay receive commission from finance institutions for financing vehicle purchase and insurance for the same, for which the figure is taken as inclusive of service tax and is also paid. Along with this they also collect labour charges from customers for certain pre delivery expenses and service tax on same is also paid. are there any provisions in the act stopping them from claiming service tax input on expenses like advertisement,cleaning charges, rent etc......
26 August 2010
Inputs services credit used for provding the service is allowed. Further specifically advertisement promotion is allowed. Further expenses in relation to business is allowed. Read the deifntion fully. Restriction in Rule 6 (3) may apply.
CAclubindia
