Pl clarify the following query relating to Service tax Input credit availment pertaining to candidate verification charges.
Case
Mr. A is the service provider who is involved in candidates profile verification before being recruited by the company B. Mr B appoints A regulary for verifying the candidates authenticity for which A charges professional charges along with serivce tax.
Query
a) Can we avail service tax credit on the above? If so can we avail on the entire amount?
b) There is probability that all candidates verified will not turn up for employment, if this is the case can we take credit on the amount paid for such verification since going by the definition of Input credit it states that 'services used by manufacturer directly or indirectly or in relation manufacture of final products and clearance of final products’ alone are eligible for availment of input credit'
c) can we classify the services under Manpower recruitment and claim entire credit as the services include antecedent verification and nothing specific relating to credit for employees not joined is given?
CAclubindia
