Credit of input service
This query is : Resolved
Ashish Surana
(Querist)
18 October 2011
lets consider an example
A is client and total work is of Rs. 100/- hence service tax on this will be Rs. 10/- ( not considering the Cess) hence total payment to be made by A to B is Rs. 110/-
and total service tax to be paid/deposited by B to Govt. for providing his services to A is Rs. 10/-
Now lets go further
Now amongst the above work B is taking services from C for providing his service to A of lets say Rs. 60/- hence total payment to be made by B to C will be Rs66/- (Rs.60+Rs6 for service tax)
n C will deposit Rs. 6 to Govt.
but as service provided by C to B is input servce to B, So how can B take credit of Rs.6/- while paying his duty liability of Rs. 10/-.
kindly reply
A is client and total work is of Rs. 100/- hence service tax on this will be Rs. 10/- ( not considering the Cess) hence total payment to be made by A to B is Rs. 110/-
and total service tax to be paid/deposited by B to Govt. for providing his services to A is Rs. 10/-
Now lets go further
Now amongst the above work B is taking services from C for providing his service to A of lets say Rs. 60/- hence total payment to be made by B to C will be Rs66/- (Rs.60+Rs6 for service tax)
n C will deposit Rs. 6 to Govt.
but as service provided by C to B is input servce to B, So how can B take credit of Rs.6/- while paying his duty liability of Rs. 10/-.
kindly reply
18 October 2011
You pay the difference the of Rs. 4 through GAR-7 challan. When u file ur half yearly return, fill the details regarding the same.
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