service tax credit on tax paid under section 66A

This query is : Resolved

Nilesh Vengurlekar (Querist)
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10 February 2009 Weather service tax credit for input services falls U/s 66A can be taken to setoff the tax payable on out put services or payment of excise?

please also mention any specific circular is available.

Rajesh Kumar

Rajesh Kumar (Expert)
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10 February 2009 Yes. Duty paid is available as credit, if the services are inout services.
However, cenvat credit cannot be used to pay service tax liability under Section 66A, as it is not treated as output service for the purposes of Cenvat Credit Rules.

Nilesh Vengurlekar

Nilesh Vengurlekar (Querist)
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11 February 2009 I want to know weather sponsorship exp paid will have service tax paid U/s 66A and same can be taken to setoff the excise duty payable after taking abatement under CENVAT credit rules.

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