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Service tax credit

Onkar Singh (Dy.Mgr Finance) (38 Points)

24 September 2015

Can we adjust Service tax paid on Brokerage on Residential Property with Service Tax Received on another Commercial Property ?

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4 Replies

Vikas (CA) (1135 Points)
Replied 25 September 2015

Yes, you can. There is no bar on such adjustments, but you need to intimate to the department.

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Madhukar N Hiregange (Chartered Accountant) (39039 Points)
Replied 27 September 2015

No the eligibility fo credit is if it is used in provding taxable services, therefore the brokerage would not be initially available at all.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 27 September 2015

if you can satisfy the eligibility that 1st one is input for 2nd then its possible otherwise not

Vikas (CA) (1135 Points)
Replied 28 September 2015

I believe there is a miscommunication Madhukarji. As far as I understand, he is saying that he has already paid Service tax under another head, wrongly. Now, he wants that excess payment to be adjusted against the Service tax liability arising under another head. Hence, the question of taking credit does not arise.

Thus, such excess payment should be allowed to be adjusted, provided you make an intimation to the Department. There is a circular as well in this respect.