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Input credit on service tax

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08 September 2011 Our client are in the business of software development services. Revenue of the firm are from outside India only (single client).

Our clients also want take input credit from the service taken inside india.

My question is that shall he take CENVAT credit on the service tax which they paid on expenses incurred?

Note: Service provided by client is exempt from service tax under General Exemption Rule


08 September 2011 Ref. your Note, since CENVAT input service tax claims can only be setoff against the output taxable services and in the instant case exempted therefore, tax not payable or paid hence not applicable to take the credits.

08 September 2011 Notification No.12/2005-ST, dated 19-04-2005 Rebate of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all taxable input services

Notification No.11/2005-ST, dated 19-04-2005 Rebate of the whole of the service tax and cess paid on all taxable services exported in terms of rule 3 of the said rules, to any country other than Nepal and Bhutan


08 September 2011 Notification No.12/2005-ST, dated 19-04-2005 Rebate of the whole of the duty paid on excisable inputs or the whole of the service tax and cess paid on all taxable input services

Notification No.11/2005-ST, dated 19-04-2005 Rebate of the whole of the service tax and cess paid on all taxable services exported in terms of rule 3 of the said rules, to any country other than Nepal and Bhutan



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