14 February 2011
My Client have trading business with one reparing unit which has been registered with the Service tax, company is paying service tax on collected service from their customer, further the comapany has also organised exibision for the business prupose, and on the bill amount service tax paid on such bill has been availed by company but during the assessment the service tax authority has disallowed such claim on the basis that such payment of service tax relaits to the trading business of assessee and not to the repair, so please write me that company is right in claiming of such service tax with certain section & rule etc. Thanks in advance
15 February 2011
There is no specific bar on common services used for trading and services. However the ST maybe prorated in some scientific manner and part credit aviled ot avoid disputes.
CAclubindia
