Input credit claim

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Deepak Rajput (Querist)
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19 June 2015 we are service provide to customer/clints of Educational,Spoken English,Astrology on telephonic.

my question is that we are start of advertisement in television and advertising agency is charges of Service tax, so how to claim of that input credit of ST against we are payable of service tax charged to customer.

CA Himanshu Ojha

CA Himanshu Ojha (Expert)
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19 June 2015 Advertisement is an eligible service for claiming CENVAT as per Rule 2(1) of CCR, 2004

In order to claim the input tax credit the service provider is simply required to file a return under rule 5(4) of the Service Tax Credit Rules, 2002, in a prescribed form alongwith the return of Service Tax in form ST-3. The prescribed form has the following details:

- Details of the input service provider (like the registration number and address of the service provider)
- Details of the value and description of the input services
- Details of the input credit availed and utilized during the period
- Details of the opening and closing balance of the input credit
- Details of the output service in relation to which the input credit is claimed
- Details of the method of maintaining the books of accounts.
- Description of the output services in relation to rendering or which the input services are consumed
- Whether separate account is maintained for receipt and consumption of input service meant for consumption in relation to rendering of output services which are taxable or exempted or non-taxable service ( Yes / No).

Accounts and records to be maintained in order to get the input credit -
1) The rules are not very transparent in this regard. Rule 5 (3) only mentions that the service provider shall maintain “proper records”. Proper records shall contain the following relevant details:

- Serial number and date of the document on which service tax credit is availed
- Service tax registration number and name of the input service provider
- Description and value of input service
- Service tax credit availed
- Service tax credit utilized for payment of service tax on output service.
2) In addition to the proper records, rule 5(1) prescribes that the service provider shall also be required to maintain the invoices or bills or challans issued by the input service provider clearly indicating the above mentioned details.