Payment of tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2012 A SERVISE PROVIDER CO. HAS ISSUE A BILL TO ITS PARTY ,
1- SHOULD CO. PAY THE SERVICE TAX , CO HAS NOT RECEIVED THE PAYMENT FOR THE BILL.
2- IF SAID COMPANY PAID THE ITS TELEPHONE BILL , SHOULD CO. CLAIM THE INPUT CREADIT

U S Sharma

U S Sharma (Expert)
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29 September 2012 yes, service tax liability has to be discharged on accural basis.

if telephone is used towards providing taxable services, i.e it qualify as input service ( such as example BPO services/ call centres) then input credit available, otherwise not.

CA Suresh Jain

CA Suresh Jain (Expert)
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30 September 2012 "input service" mean any service used by the provider of output service for providing an output service and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

In view of the above definition of input service in my opinion the credit is available.

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