CA. Rashi Goyal (Chartered Accountant) (512 Points)
20 March 2009Hi,
One of our client, who is providing services, pays the service tax on Bank charges & commission but in the bank statement the charges are reflected inclusive of service tax. Service tax charges by the bank is not shown separately in the bank statement.
My query is whether input credit can be taken o it or not. And if taken than how to take credit on service tax paid on the bank charges.
pratik mehta
(assistant manager)
(26 Points)
Replied 12 May 2009
The CENVAT Credit of Service Tax paid on Bank Charges can be taken either by collecting transactionwise Bank Advise. Another way is that you have to ask the bank to furnish the Certificate along with statement showing the details of service tax on service charges collected by the bank from you. You can ask the certificate from bank either Quarterly / Half Yearly / Yearly. Such certificate and statement must be signed by any authorised person of the bank. You can avail CENVAT Credit of Service tax on the basis of the statement and certificate provided by the bank.
Generally, the banks will refuse to provide, but many companies are collecting such certificate issued by the banks and avail CENVAT Credit on such certificates.
manish kumar
(Dy. Manager(Internal Audit))
(44 Points)
Replied 10 September 2009
There is no time limit for availing cenvat credit, but whether cenvat credit against the the bank charges which were already accounted as expenditure in previous years, can be taken now ? Whether it will not attract unjust enrichment? plz somebody help and clarify
pratik mehta
(assistant manager)
(26 Points)
Replied 11 September 2009
| Originally posted by :manish kumar | ||
| " | There is no time limit for availing cenvat credit, but whether cenvat credit against the the bank charges which were already accounted as expenditure in previous years, can be taken now ? Whether it will not attract unjust enrichment? plz somebody help and clarify | " |
pratik mehta
(assistant manager)
(26 Points)
Replied 11 September 2009
Dear Mr. Manish Kumar,
It is correct that there is no time limit for availing CENVAT Credit of service tax, but if such credit pertains to previous years and if you have accounted it as expenditure, you will not get the CENVAT Credit of service tax, becuase you cannot take dual benefit, viz. benefit of CENVAT Credit and benefit of Income tax. So first of all you have to check with your finance people, whether they have expensed out such credit pertains to previous year or not? But if it is shown in Service Tax Credit Receivable Account then you can avail CENVAT Credit pertaining to last year. Otherwise it is unjust enrichment, and according to this principle, any person cannot get the dual benefit.
Regards
PratiK Mehta.
manish kumar
(Dy. Manager(Internal Audit))
(44 Points)
Replied 17 September 2009
what is the test for general input services eligible for cenvat credit? Say for instance, whether service tax paid for all bank charges are cenvatable even when it is incurred for output service e.g. charges for B.G. submitted to customs authorities for export purposes
p.veera Prasad
(audit assistant)
(30 Points)
Replied 13 March 2010
hi ,
we are software and hardware trading business, whether Purchase invoice in service tax input taken or not ,and when sale invoice in Service tax totally liable or service tax input can adjusted or not
please clarify.
Ganesh B
(Accountant)
(101 Points)
Replied 23 April 2014
Hi! Sirs,
Is there any time limit to utilize the credit, actually, for first half year (eST3) return we're not utilised to take the credit. Is it avail in the second half year and shown in the return and the balance amount (after utilizing in the credit part) to be kept as closing balance.
Kindly advice.
Rohit Patidar
(Practicing C.A)
(29 Points)
Replied 28 March 2016
Credit card Service charge taken by the bank then client have right to avail cenvat credit on commision and bank charges amount
nitinjain
(accountant)
(407 Points)
Replied 06 March 2017
A trust charge service tax on rent of building can it claimsevice tax on that charge as input service tax
nitinjain
(accountant)
(407 Points)
Replied 06 March 2017
A trust charge service tax on rent of building can it claimsevice tax on that charge as input service tax
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