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Input tax credit for real estate agent services

yashsr (CA) (2285 Points)

14 January 2013

Hello,

1) A Real Estate Agent registered under head 'Real Estate Agents' paid for Advertising and Computer Maintenance and paid Service Tax @ 12.36% on the same. Is this deductible from Service Tax to be paid as Input Credit?

2) What if this expenditure was incurred in May 2012 but there was no service provided until December. Can I set this off as input credit against the commission received in December?

Shouldn't this actually have been shown in the Service Tax Return for the period 1/4/12 to 30/6/12 and claimed as refund?

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4 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 14 January 2013

1) The Service Tax Input Credit on Advertising and Computer Maintainence can be availed.

2) The Service Tax Input Credit can be carried forward to the next period during which Commission is received. Thus, the service tax liability shall reduce to the extent of the Service Tax Input claimed.

Regards,

Devendra Kulkarni

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yashsr (CA) (2285 Points)
Replied 15 January 2013

Originally posted by : Devendra
	2) The Service Tax Input Credit can be carried forward to the next period during which Commission is received. Thus, the service tax liability shall reduce to the extent of the Service Tax Input claimed.

Correct. But what if I have filed a complete 'NIL' return for the quarter APril to June 2012 in which I had paid for these expenses and service tax on the same(Advertising and Computer Maintenance)? Can I still take the credit by showing input credit in the next period even though they were incurred previously?