How to get service tax rebates

This query is : Resolved

Vishal Sharma (Querist)
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12 April 2013 I want to know that how can we get rebate on our service taxes for IT Firms. Suppose i have purchases a goods like : UPS Invertor, Computer Systems, softwares and rest products and all they takes sales taxes while purchasing and rest things like electricity and office rent bills.

but how can i get rebate through these things which i have purchased on my firm name, our consultant says that they comes under the sales taxes and never provides you rebate on service taxes, for this you have to take rebate through telephone bills of your firms but how is this possible if we are providing services to our clients and making money from this and putting that money to purchasing official accessories like Systems, printers and many more things like that so why we can't take rebate if we already given taxes like sales taxes while purchasing goods for our firm.

Please guide me as i am not confident about my consultant as he only knows about Sales Taxes and i am his first client for service taxes in IT Firm. Looking for Effective reply and hoping to get good consultant from this forumn who take cares about my all financial stats.

CA bhargava

CA bhargava (Expert)
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12 April 2013 Mr. Vishal Sharma, the service tax rebate as you are asking will be termed as service tax credit in the service tax terminology.,

and coming to the part of taking the credit of service tax., you will be liable to take credit of service tax only on the input services which you receive from any tax provider.,
for example: if you take any services from a chartered accountant, and if he charges service tax in addition to his fees, you can claim the credit of the service tax paid to him .

you can claim the service tax credit from the amount payable by you to the service tax dept., which u had collected from your clients or customers.,

if you want more info , mail me to : bhargava.wisdom@gmail.com