JAYANTA (Accountant) (97 Points)
17 July 2014Sir, We are a Professional & Consultancy Firm.We are providing designs.We issued our invoices to our customer with 12.36% ST. In our business we required lot of traveling .On travelling bill the service provider ( Travel Agents mainly Air tkt purpose ) are raising their bill with ST @ 12.36%. Now my question is should I take input credit @ 12.36% and compute output less input @ 12.36% . Please help me out.
CA Anoop Tiwari
(Practicing Chartered Accountant)
(135 Points)
Replied 20 July 2014
As per CENVAT credit rules 2004 travelling in your case falls under input services to render taxable services so you can claim input credit of servie tax on travelling expenses.
JAYANTA
(Accountant)
(97 Points)
Replied 22 July 2014
Thanks Anoop Sir.
But how much% of input credit I will to take 12.36% ?
Jayanta
Madan
(Accounts Officer)
(154 Points)
Replied 23 July 2014
Whatever service tax is charged on the air ticket, the same can be claimed as input service tax credit. And this can be used for payment of service tax if any by deducting the service tax to be paid
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