Service tax setoff

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2011 Dear Sir,
I have a one query about service tax that is A Automobile company open a service center for car servicing including spare part sell. and paid a rent (Including service tax) for that place.
can we consider rent service tax for 100 % set off or proportionate of actually servicing & selling part.

note : 1) rent paid for selling spare part & servicing of car.

Sandip shringarpure
9987006961

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 October 2011 The main business of the service centre is servicing of vehicles. So it can utilise the service tax paid on rent against its service tax liability.

It can also utilise the credit of service tax paid on other services, such as telephone, GTA.

Preeti (9971144895)

Preeti (9971144895) (Expert)
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03 October 2011 Dear Mr. Sandeep,
I hope that you are in well position.

You can claim service tax input credit on the basis of ratio of sales and services. Suppose your service tax input on rent is 10000 and your sales is 60000 and service is 40000 then you can claim service tax of rs 10000 in the ration of 60 and 40%..

Thanx & Best Regards,
Preeti Rajput
91+9015098149

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2011 Thanks a lot

Preeti (9971144895)

Preeti (9971144895) (Expert)
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03 October 2011 Wecome always. You can ask any query....