Input Credit

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VINAY (Querist)
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30 January 2009 Dear Sir,

Pls. tell our company Rent Bill raise to party & service tax charge in bill and we also paid rent to another party there bill in also service tax mentioned then can we take input credit or not ?

second question is we know below 10 lac service tax is exempt but if this amount increase 10 lac then my liabilty on which amount ?

Thanks

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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30 January 2009
You can set off service tax paid against service tax payable.

Once you cross the exemption limit then you have to pay tax from re.1 of that financial year.

Therefore while estimating you should be careful.

VINAY

VINAY (Querist)
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30 January 2009 Actually we have a own Shop in Gurgaon Mall so we are raise Rent Bill to Party and service tax charge. (Rs.30372)

as well as we also Rent Paid to Pantaloon Mall, Mumbai and Pantaloon also charge Service Tax in bill (Rs.3090)

Then in this condition can we sett of service tax amount (Payable & Receivable)?

Pls. Clear

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Dayal

Dayal (Expert)
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19 April 2009 yes you can very well set off your liability against the input rent service tax charged to you.

For 10 lacs clause, you start paying on every rupee after 10 lacs