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Partnership firm itr filing u/s 44ad

Nagappa B Nesur (PROPRIETOR) (100 Points)

28 March 2012

Dear All,

Can any one clarify.

Where an assessee is paying service tax after abatements for one service and without abatement for other service, Can he claim Input Service tax credit for such service without abatement.?

If he has charging ST for any one service with abatement, he is not allowed to take any Input credit?

Regards

Nagappa

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10 Replies

jay shah (Properitor) (95 Points)
Replied 28 March 2012

Originally posted by : Nagappa B Nesur
	Dear All, Can any one clarify. Where an assessee is paying service tax after abatements for one service and without abatement for other service, Can he claim Input Service tax credit for such service without abatement.? OR If he has charging ST for any one service with abatement, he is not allowed to take any Input credit? Regards Nagappa

Sir,

i would appreciate if you can share the nature of service on which you are taking abatment and not.

Regards,

CA.jay Shah baroda.

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CA Nikhil Jhanwar (CA,CS) (4447 Points)
Replied 28 March 2012

You can take credit of service tax paid on service without abatement irrespective of the fact that you have taken abatement in respect of any other service. These service are mutually exclusive. Further, point of not allowing credit comes only when any exempted service is provided. But service where abatement is provided are not exempted services......

Suraj Singh Negi (Accountant) (26 Points)
Replied 28 March 2012

Hi I m Suraj, working as accounts exec. My organisation has started new vertical of manpower supply busines. I have query in relation to the payment date of service tax which we will charge from our clients on the services provided for the month of march. As we have to raise invoice on the basis of attendance of our perssonel, we caanot raise invoice bfore first working day of consecutive month i.e., april. But according to service tax rule6 sub-rule(1),"Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.]9" Please advise, should we pay service tax on 31st march and what would be accounting treatment

Pratul (FINANCE MANAGER) (105 Points)
Replied 28 March 2012

@ nagappa.. in very simple terms, you can claim credit for the actual amount of service tax paid on services received for payment to be made to the Government in respect of the OUTPUT services provided or to be provided by you..

jay shah (Properitor) (95 Points)
Replied 29 March 2012

Dear Suraj,

its clear crystal that when service tax has to be paid:

when advacne recd

when you have renderd services /issue invoice

Whichever is earlier

In your case you have renderd services and for march due date of payment is 31st march of that only.

So you should pay on or before 31st march. Remember cheque payment is subject to realisation so take care for that also.

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ashok (Deputy Manager) (22 Points)
Replied 02 April 2012

Dear All ,

i want to know one thing that if a service provider raise a invoice for dated 31.03.2012 on 01.04.2012 ( which is also mentioned on invoice as invoice generation date ) charged service tax as 12.36% . can we take cenvat credit @ 12.36% ?

1) Service provided before 31st march

2) invoice date is 31.03.2012 ( invoice generation date is 01.04.2012)

3) payment will be made in april-2012

Please advice

Thanks and regards

Ashok Chaudhary

Pratul (FINANCE MANAGER) (105 Points)
Replied 02 April 2012

@ ashok.. wat exactky do u mean by invoice geneartion date?

your Invoice Date is 31st March '12. the service provider could not have charged ST @ 12.36% in the first place. the new rates becomes applicable from the 1st of April 12. if u are content with the excess payment and not issue a credit/debit note in this respect, then you may take the CENVAT credit of the actual amount paid..

ashok (Deputy Manager) (22 Points)
Replied 02 April 2012

Dear Pratul ,

There is invoice from GAIL at which at the top inovoice no. is written and invoice date is written as 31.03.2012 , but at the bottom of invoice a line is printed as " invoice generation date " that is 01.04.2012 and we are not going to issue debit note to them and we are making payment with 12.36% amount. Please advice.

Thanks and Regards

Pratul (FINANCE MANAGER) (105 Points)
Replied 02 April 2012

@ ashok.. in the case where ur not goin to issue a debit note, and u ll b paying the amount of ST @ 12.36% then u might as well take the credit of the amount paid. For availing CENVAT credit, what is relevant is the balance of the amount standing in the CENVAT ledger on the last day of the month/quarter as the case may be. So it does not matter whether you have paid ST @ 12.36% or 10.3%. It shall be treated as input service irrespective of the rate of ST & Credit shall be available.

jay shah (Properitor) (95 Points)
Replied 03 April 2012

Dear Pratul,

your case is like issue of invoice after the "CHANGES IN RATES" .

However services have been already provided before the change in rates.

Now 1st of all GAIL should not have issued invoice at 12.36%. Stil if they are issuing and you are paying then you can take credit of full 12.36% and it will not restrict at 10.30%.

This because CENVAT CREDIT is the amount whic you have lawfully paid. And you are eligible to get the credit of that.

So per my view you can take the credit of full 12.36%