12 October 2012
Lessee can claim credit if it is in relation to manufacture or provision of taxable goods/services, modernization or repairs of factory or office, storage, quality control, recruitment, accounts, audit, sales promotion, procurement of inputs, legal services, financing, computer networking...
12 October 2012
Threshold limit is Rs 1.80 Lacs per annum.
Regarding TDS on Service Tax Portion--
As per Circular No.4/2008 dated 28.4.2008, it was clarified that TDS on rental payments would be required to be made only on the basic rental amount without including service tax. In other words, TDS should not be made on the service tax portion of the rent. However, this analogy is not applicable to TDS under other sections.
In short-- For 194I - Deduct TDS on amount excluding service tax. For other section - Deduct TDS on amount including service tax.
But there is no much services done to take service tax registration to claim this credit. Is there any provision in service tax to earmark this credits accumulated for last 5 years so that the company can have a future benefit. if possible, please explain.
CAclubindia
