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Service tax calculation

Murugesan Palanisamy (Accounts Executive) (64 Points)

29 September 2011

Dear all,

When paying service tax, can we take any credits,

ex: service tax payable amount is 5000.00 and we paid service tax amount for telephone, travelling etc.. is 2000.00 what amount we need to pay ?

Thanks

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3 Replies

ACMA Obulirajan R (M.Com, ACMA) (1119 Points)
Replied 29 September 2011

If the assesse is the service proivder/Manufaturer/Manufacturer service provider, then you can take credit of all service tax which you have paid for all input services.

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SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20173 Points)
Replied 29 September 2011

Originally posted by : OBULIRAJAN R
	If the assesse is the service proivder/Manufaturer/Manufacturer service provider, then you can take credit of all service tax which you have paid for all input services.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 29 September 2011

service tax payable for "providing taxable output services" are 5000/-

you are availing input credit for "input services" 2000/-

so the balance of 3000/- is payable in cash.

Note:

1)reverse mechanism service tax liability can not be set off with input credit, but payable in cash only , example GTA service tax.

2) Input credit is available on only "input services" which are used directly in providing "taxable output services" / "taxable excisable goods clearance"

3) if the assessee has availed any value based exemption / abatement either in service tax or in excise, then no input credit admissible.