input credit on common services

Vbsuresh (13 Points)

10 May 2007  
Sub : Availing of service tax paid on common services in a trading business

I am working in a retail company. Apart from the sales, there is portion of other income which includes display charges collected form vendors towards promotion of their products by displaying in the retail out lets.This will attract the service tax under Business Exhibition services.

The company is availing different kind of professional,  Advertisement, Telephone, Contract Labour, Business Promotion etc.. services and paying the service tax on all these kind of expenses.

Now i need a clarification regarding availing the credit of Service tax paid against the service tax payable on display Charges. Can the Company claim 100% input Credit of Service Tax paid on different kind of Expenses? If not what is the alternative for the company to avail the 100% input Tax.

Pl. let me know with relevant sections of the Service Tax Act as soon as possible as this is very urgently required.

Thanks,

Suresh ACA
09391905096