Service-tax Set-off on Recharge of Prepaid Mobile

Hi Niraj, Service Tax Credit can be taken on the basis of valid documents. An invoice raised by the input service provider containing the particulars prescribed under rule 4A of the Service Tax Credit Rules is a valid and proper document. Prepaid Mobile Recharge Voucherdoes not contain other prescribed information like name and address of service receiver, Sl. No. of the voucher. Some service providers do not even mention the service tax regdn. no., catagory of service. It is also not possible to satisfy that the service has been used in or in relation to provision of taxable output service by the service provider. Service Tax credit is not available on prepaid mobile recharge voucher - in my opinion.

Pls refer to the reply posted to your query. The phrase "rule 4A of the Service Tax Credit Rules" be read as "rule 4A of the Service Tax Rules".