Service Tax Input Credit

This query is : Resolved

Ravi Kumar Rajgaria (Querist)
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24 September 2008 Our gross billing for the year 2008-09 will be in rangeof 7 lacs to 15 lacs but can not say exact in this moment. Last year billing was Rs. 4 Lacs.

Now Can we take the input credit on service tax for adjustment of service tax payable even if let assume gross billing will less than rs. 10 Lacs for this year?

In other words...

If my billing is less then Rs. 10 Lacs then if i collect the service Tax then can i take the input ctredit for adjustment of Payment of service tax?

Jitender

Jitender (Expert)
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24 September 2008 no ,u can't calaim input credit if u r availing the exemption of smaal service provider.

Ravi Kumar Rajgaria

Ravi Kumar Rajgaria (Querist)
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24 September 2008 So,
If we collect the service tax then we have to paid the same? Can't we adjust via input credit?

What happen if our gross billing during the year 2008-09 cross Rs. 10 Lacs?Then can we take the input credit in this year?

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Arbind Aggarwal

Arbind Aggarwal (Expert)
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27 September 2008 Can not collect service tax untill u are registered. If u opt to pay tax even without crossing 10 lakh limit, first take regn. then from that date onward start taking credit of input services and start collecting tax from the service receiver.

For more details contact at: arbindaggarwal@yahoo.com