INPUT CREDITS ON SERVICE TAX

This query is : Resolved

Sanjay Agarwal (Querist)
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19 March 2009 CAN WE GET CREDIT FOR SERVICE TAX PAID ON TEL BILLS, ELECTRICITY ETC AND ADJUST THE SAME AGST OUR LIABILITY FOR PAYMENT OF SERVICE TAX.

CAN WE GET THE CREDIT IF THE BILLS ARE NOT IN THE NAME OF FIRM BUT IN THE NAME OF PROPRIETOR.

Rajesh Kumar

Rajesh Kumar (Expert)
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19 March 2009 Yes, if such services are input services.
To take credit in the Cenvat credit rules, use of input services are required in providing output service; it is irrelevant that the bill is in the name of proprietor. In any case, in the eyes of law, a proprietor & a proporietorship firm is one and same thing.