Our Company has paid Service Tax under Reverse Charge for the services of an advocate for getting due diligence audit on the New Brand we have acquired.
While capitalising the amount paid for the brand, the related costs are also capitalised, like amount paid to advocates etc.
While receiving the royalty for using the brand by assigned user, we may have to collect service tax and set off the service tax input so paid under reverse charge.
The question is the service tax paid under reverse charge is a capital service credit or as such we can set off.
CAclubindia
