Dear CAclubindia,
can u pls let me know whether service tax credit can be taken for Housekeeping bill raised (workers salary) & if not please give me a reason
navinkumar naicker (Article) (419 Points)
02 May 2012Dear CAclubindia,
can u pls let me know whether service tax credit can be taken for Housekeeping bill raised (workers salary) & if not please give me a reason
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 02 May 2012
the credit of service tax paid & excise duty can be taken if & only if the service or the input is used in or in relation to the manufacture of the final product. If it is not used then no credit would be available.
navinkumar naicker
(Article)
(419 Points)
Replied 02 May 2012
Mr. Giridhar thanks for ur reply what if the bill is for security charges (guards salary) will it be same i.e we shall not take Service tax credit.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 02 May 2012
If the security guard is employed in the factory premises, then the credit can be availed. however if he is employed in the office of the co then no credit can be availed.