01 October 2009
On 10-July-2009, X an Advertising Agency (Proprietorship firm) Provided taxable services of Rs.10,000/- and service tax @ 10.3%, Rs.1,030/-; Total bill amount Rs.11,030/- received. This services were partly outsourced by another firm Y for which an invoice of Rs.5,510/- (inclusive of service charge Rs.5000/-, service tax @ 10.3% Rs.510/-). Can X Claim for input Service-Tax of Rs.510/- in the FY 2009-2010, which he paid to Y, if the outsourced Invoice date is 02-Feb-2009 ? (Service provided & Outsourced in India).
02 October 2009
There is no restriction on availment of Input Credit, Normally it is contested only if it is beyond a period of one year from the date of invoice ( as this provision is under central excise) however as far as service tax provisions are concerned there is no restricition, you can take even after a period of two years from the date of invoice, provided the bill has been paid and amount realized by the service provider
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