Set off procedure

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Juhi Agrawal (Querist)
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04 January 2013 Hi to all,
The company in which im working is a financial service provider.
They calculate there service tax payment after setting the service tax paid by them in electricity bills, telephone bills, etc
My question is " is it a correct procedure of paying the balance amount at service tax after availing the amount of service tax paid on electricity & telephone bills"
if not please provide me the circular number or notice which mention it.

Please reply soon

Guest

Guest (Expert)

04 January 2013 The set off is available for the input services which are having direct nexus with the output services. The set off rules are called CENVAT CREDIT RULES.