sudha (proprietrix) (113 Points)
16 February 2010I am a chartered accountant providing outsourcing services to a manufacturing industry. The factory is in Tirunelveli and corporate office is in chennai. Can the service tax which i give in my bill be adjusted against the excise duty which the company is paying to its material creditors? Pl clarify at the earliest.
thanks in advance
JAGADEESH
(CA-FINAL ( FINANCE MANAGER))
(57 Points)
Replied 17 February 2010
karthikeyan.v
(Chartered Accountant)
(523 Points)
Replied 17 February 2010
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Dear sudha of course they can regards karthi Originally posted by : sudha |
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I am a chartered accountant providing outsourcing services to a manufacturing industry. The factory is in Tirunelveli and corporate office is in chennai. Can the service tax which i give in my bill be adjusted against the excise duty which the company is paying to its material creditors? Pl clarify at the earliest. thanks in advance |
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Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 18 February 2010
Yes of course they can take the credit
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 19 February 2010
Since the outsourcing services are in the course of business they are squarely covered as eligible as per the definition of input services as set out.
sudha
(proprietrix)
(113 Points)
Replied 20 February 2010
Thanks everybody.
But still my problem is not solved. Now their reply is that-As per section 3 (1) of Cenvat Credit Rules 2004, only "A manufacturer or producer of final products or a provider of taxable service" will be eligible to take credit of input service tax. We are a Trader and hence you need to revise your bill. My query is 1. In what way, the status of the service receiver is going to affect my bill? 2. Whether the service receiver is also under any obligation when he is receiving such taxable services. If so, what are they?
Pl reply
Venkat M
(FCA)
(133 Points)
Replied 21 February 2010
1)Eligibility or otherwise of a service receiver to avail input service credit will in no way affect the duty of service provider to charge service tax on services rendered.
You need to charge service tax even if the receiver is unable to receive input service credit .
2)Regarding your second question, a service receiver, if eligible to take CENVAT credit on input services, can do so only after payment of value of input services and the value of service tax payable on it,as shown in invoice of input service provider
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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