28 May 2011
Dear Sir/s, Kindly let me know the following clarifications : 1. Our's is an advertising agency. we will take orders from clients to publish ads in news papers / magazines. Against the bills submitted by news paper / magazines publishers are charging service tax. We are also collecting service tax on our bills from our clients.
2. My query is can we take input credit of service tax which we paid to news papers / magazines publishers against our bills, collecting service tax from clients apart from the other service tax credits i.e., telephone, bank charges, etc. Please let me know immediately. Your immediate response would be very helpful to me and appreciated in this regard.
01 June 2011
Yes credit would be allowed as long as the inpcoming services are used in provision of taxable services. See articel on cenvat credit in articles section for more clarity.
CAclubindia
