10 August 2009
Whether we can take service tax input credit on bank interest on OD Accounts by reverse calculations???
For Ex. If a company having a od of Rs.1 Crore & paying interest of Rs.1Lakh p.m Whether they can take Rs.9338(100000*10.3/110.3) as service tax input credit
10 August 2009
On Bank intererst, Bank is not charging service tax. On bank charges, the bank is charging service tax and cenvat for that can be taken by reverse calculation provided either you have a circluar of bank mentioning that charges are inclusive of service tax or obtain a certificate from bank that service tax has been charged and deposited by bank.
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