Credit of Service Tax

This query is : Resolved

SAURABH (Querist)
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17 September 2009 Sir
I am a service provider and charge service tax from my clients.

Can i claim credit of service tax which i paid on my telephone bills and rent ?

Can i deposit the service tax collected from clients after deducting these payments ?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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20 September 2009 Cenvat credit is quite complicated. A straight jacket answer is not possible, in the absence of full and complete information.

Simply stated, if you are using the input services(telephone, rent) for providing output taxable services, you are eligible.

Caution :

If you are providing exempted services and /or manufacturing exempted products, your cenvat eligibility will be restricted.