05 March 2012
We have taken a S. Tax input on catering service from April,2011 to till date. Service Tax dept says that we can't take input on catering and insurance services.
Are they right?
Now what should we do if they are right? How can we reverse these input without paying any rupee? We have not utilised any input from output tax till date.
08 March 2012
If you are availing abatement on outdoor catering service then you cannot take credit.. There are recently two judgments of high courts one in Bill forge and another in Dynaflex (can't remember the exact citation and name)which says if credit is availed but not utilised then there is no penalty or interest.
CAclubindia
