Service tax input

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2014 DEAR SIR/MADAM,

ONE OF MY CLIENT IS RECEIVING AND PAYING SERVICE TAX IN THE HEAD OF RENTING OF IMMOVABLE PROPERTY,

AND HE GOT ONE SERVICE TAX INVOICE FOR COMMISSION CHARGES AND SERVICE TAX PAID THERE ON.

NOW MY QUESTION IS WHETHER HE CAN CLAIM THAT SERVICE TAX CAN BE ADJUST WITH THE SERVICE TAX PAYABLE BY HIM.

ADVANCE THANKING YOU SIR/ MADAM.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 February 2014 1. Service tax paid on commission charges is admissible as CENVAT credit.

2. This CENVAT credit can be utilized for payment of service tax liability on renting of immovable property.

3. Eg. service tax on commission = Rs. 5,618/-

Service tax liability on rent = 12,360

CENVAT credit utilized = Rs. 5,618
Balance to be paid through challan = Rs. 6,742