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Service Tax Input Claim

Robert.M (Student) (93 Points)

10 November 2009

Can We claim the input service tax of the periods for which the client had general exemption of 10Lacs?? Ex. Date of Registration : 12.8.2008 , in Feb month, the Taxable receipts exceeds 10lacs and so, he will be liable to pay service tax. But before paying, Can he bring forward the unclaimed input service tax from 12.8.2008 to Feb month and set off against his liabilty and pay the differential amount if any???

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8 Replies

Gautam Joshi (Partner) (361 Points)
Replied 10 November 2009

Hi Robert,

Conceptually, benefit of CENVAT is available only when there is a cascading effect (i.e. tax on tax) which is an effect where both inputs and outputs are taxed. In your given example, your output service is exempt upto 10 lakh so the right of CENVAT Credit upto that amount never arises. Now, if it never arises then, obviously, you can not avail that Credit even at subsequent time i.e. once you cross limit of 10 lakh and pay Service Tax.

Discussion leads to an end that upto 10 lakh a SSP is required to bare CENVAT and can avail exemption benefit. After that limit, enjoy CENVAT and pay ST.

You read bare text of Notification No. 6/2005 dated 01.03.2005 and specially point no. 2(ii), (iii), and (iv) which are reproduced below for your easy reference:

"2. The exemption contained in this notification shall apply subject to the following conditions, namely:-

Hope your query will come to an end.

Warm Regards.

(i) the provider of taxable service has the option not to avail the exemption contained in this notification and pay service tax on the taxable services provided by him and such option, once exercised in a financial year, shall not be withdrawn during the remaining part of such financial year;

(ii) the provider of taxable service shall not avail the CENVAT credit of service tax paid on any input services, under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 (herein after referred to as the said rules), used for providing the said taxable service, for which exemption from payment of service tax under this notification is availed of;

(iii) the provider of taxable service shall not avail the CENVAT credit under rule 3 of the said rules, on capital goods received in the premises of provider of such taxable service during the period in which the service provider avails exemption from payment of service tax under this notification;

(iv) the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable;"

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Robert.M (Student) (93 Points)
Replied 11 November 2009

ya, thanks a lot for answreing my queries. and now the client has already paid the service tax without claiming general exemption of 10lacs(on accrual basis). So, can We claim now and adjust the amounts already paid for subsequent months or not???

Santosh G.Baligeri (Audit Assistantat) (48 Points)
Replied 28 February 2011

Hi,

How to make payment for service tax ? and how to taken creditof service tax? what is the rule? plz reply me

with regards

Santosh G.B

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 28 February 2011

Originally posted by : Santosh G.Baligeri
	Hi, How to make payment for service tax ? ( in scheduled banks by GAR 7 ) and how to taken creditof service tax?( input credit can be taken to set off the output tax liability of taxable services provided) what is the rule? ( visit www.servicetaxindia.gov.in) plz reply me with regards Santosh G.B

RAGHAVENDRA (Practioner ) (69 Points)
Replied 22 March 2011

Hi ,,

Can any one suggest reagarding this issue

As we have paid the Telephone and internet bills for the Employees as Reimbursement expenses. Now can we cliam the Service tax part form this . or we need to cliam only the bills which are in the name of Compnay .

Help me for which all bills can ST Input can be cliamed ?

Thanks in advance .

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 22 March 2011

bills in name of company only are eligible

1 Like

bharat Jain (Article) (23 Points)
Replied 09 November 2012

Hi...

I received a bill with service tax in last year and paid the amount after deducting tds now party arraised a debit note in curent year for service tax amount . should i accept the that debit note ?