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Service tax

sahayaraj A (Accountant) (43 Points)

22 April 2017

we had debited by Swiping Mechine company for the Purpose of Transaction they charge some amount plus service tax in our payment. is there any possible to reclaim the service tax amount for our service tax return

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Mahesh Babu (CA Final) (618 Points)
Replied 22 April 2017

As per CENVAT credit rules, the input can be claimed on such services related to your business directly for selling of Goods and/or services. The Swiping machine used ath the time of POS, for easy collection of money and it is not directly related to your business.

So, you can't claim input on such service charges, insted it can be charges to P&L.

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