Setoff of input service tax

This query is : Resolved

Jayesh Mandalia (Querist)
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06 July 2012 Hi,
My query is that can balance of input service tax as on 1st April be utilised for output service tax liability of the current financial year.

EG:
01/04/2012 Op Bal Input Service Tax 5.00 Lacs
Output liability for Apr-2012 7.00 Lacs
Balance payable in cash 2.00 Lacs

Is the calculation correct ??

Mohit Naithani

Mohit Naithani (Expert)
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06 July 2012 Yes, we can utilize service tax input (Opening balance) upto the amount showing in our Service tax return of 31st March 2012 and carry forward the same for next financial year......