Imput credit of service tax

CA Arindam Sain (Practice) (308 Points)

09 July 2014  

Dear Friends,

One of my client made bill for Rs.56180 . He is service provider. Breakup is Rs.50K his service charge and Rs.6180 is Service Tax. amount but basically this job is done by other 2 party suppose 1st one is B and 2nd one is C, B has billed for Rs.39326 i.e., S.C 35000/- and S.T is 4326 and C has billed Rs.16854/-i.e., S.15000/- and S.T Rs.1854/-. Infact nothing can be made by my client in this project. My question is as he is liable to pay 6180/- , then how can he claim this imput service tax credit while he will furnish ST-3 return and how he will account for. Is there any obligation on his part to pay service tax. If there is any other matter I have missed out. pls. guide me.