06 November 2012
We are an Indian Subsidiary Of Japanese company, and we do import machines from japan and sell it here.
here the query is that we pay to them in jpy that is japanese currency , and in this regard bank charge us service tax also in lieu of conversion of currecy and pay to them......my question is that wheather we can take input tax credit of that service tax which bank has charged in lieu of conversion of currency??
A Answer with relevant secion is highly appreciated!
06 November 2012
Any service used by provider of taxable service for providing output service, Only That Input Can be taken.
Well, Specifically Financial services is not Included in Input Service definition. Accounting , auditing, financing, recruitment and quality control Can be Related with Your Service.
But Before Taking Input, Be ready to Prove The Corelation Between input & Output Service.in front of Deprtment.
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