22 May 2009
hi, we are in the shipping management business , we manage ships on behalf of ship owner, whatever we spent for expenses ,it is reimbursed later. can we take this as input credit on expenses like telepone, electricity etc.moreover, i would like to know whether our services will be taxable in service tax as we are providing our services to london .
22 May 2009
Your services would normally be taxable under "Management, Maintenance and Repair Service" if provided under a contract or agreement. Since you are providing the services at London your services may qualify as export and hence may have the option of not paying service tax. Service tax paid on telephone can be taken as input credit. Please give the complete details to know whether your services qualify as export.