AMOLgk (ACCOUNTS EXECUTIVE) (31 Points)
27 February 2010Hi All
I have litle bit confusion on input credit on service tax. suppose CO A is providing life time membership of club and charge service tax on its membership fees. Can co A is entiltel to get service tax credit on service tax paid by it on Telephone Bills and service tax on Rent . Please solve my query as early as possible
Thanks
Amol 
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 02 March 2010
Yes, you can use the credit of service tax paid on input services for the payment of output services provided such input service used or to be used in providing output service (Rule 3 of Cenvat Credit Rules)
Ajay Raghatate
(Sr Executive (Excise & Accounts))
(736 Points)
Replied 02 March 2010
Yes,
U r eligible to avail the service tax credit on telephone bills & Rent, b'coz it is in relation with providing the output service
CAclubindia
