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Input Credit!!

Karnik Gulati (Consultant) (59 Points)

18 July 2009

Hi All,

Whether the assessee can claim service tax input even if the party's service tax no. is not mentioned on the bill although he is charging service tax?

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9 Replies

Arun Kumar Singh (GST Advocate) (15203 Points)
Replied 18 July 2009

If Service Tax No. is not mentioned on the invoice then you should not pay service tax. You can't take credit on this invoice.

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VARUN (PCC STUDENT) (523 Points)
Replied 18 July 2009

fully agree with arun kumar ..... wat he said is absolutely right .........

Sushma Mevacha (Executive) (394 Points)
Replied 18 July 2009

What should one do if he has already paid the service tax amount on input services as there was not mantioned the service tax registration no on invoice??? Can we ask for the revised bill? or else we can do the amendment on the existing invoice??

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 19 July 2009

If the service provider has paid the ST then get the ST number noted in the invoice with his signature+ obtian the ST certificate from him. This would prove due care. The credit would be admisibble.

Ritesh Goyal (Dy Manager) (111 Points)
Replied 20 July 2009

This is basic requirment under Service tax rules that ST registration no. of Service provider is must. Without No. invoice is defective and you will not be eligible for taking the cenvat credit on that invoice.

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CA Amit Goyal (PARTNER) (71 Points)
Replied 21 July 2009

better option u can ask the revise bill from party. in which he has put the service tax reg no. or otherwise u ask the refund from the party.

Viren D. Thakker (CMA Final) (174 Points)
Replied 31 July 2009

Hi All,

If we outsource 100% manufacturing activity to job worker then job worker would itself produce goods so job worker will b liable to pay excise duty. I want to ask that we the main company can take service tax credit?

Sushma Mevacha (Executive) (394 Points)
Replied 31 July 2009

In the case of the JOB WORK there is no involvement of Excise Duty of material is returned within the time limit.... if it is delayed there is terms of the excise duty that menufacturare has to reverse......

Satish (CA Final Student) (479 Points)
Replied 01 August 2009

Hi Viren, It is not cleared from your question whether the outsoursing is with material or you will be providing the inputs and the job worker will manufacture the goods for you. In the first case, job worker will be no more the job worker, but he will be the manufacturer. In second case he will be only a job worker.