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Whether Input of service tax is available or not

30 June 2011

Whether service tax credit on expenditure incurred and paid before the date of registeration under service tax is available or not?????????? Pls advice.

Also service tax input on mobile bills of Admin staff is availlable or not????

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7 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 30 June 2011

Prior to statuary liability of service tax for providing services, input credit is not possible.

Mobile bills are not input services, hence input credit not available.

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CA Tushar Singhania (Asst. Manager Accts & Fin.) (402 Points)
Replied 01 July 2011

I disagree with Mr. Sharma on the grounds that since ST. has been chargd by the telecom service provider it shall qualify as input Service Tax

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 01 July 2011

to avail the input credit on telephone bills, the should be

1) in the premises of service providing address, or

2) used by the person ( workers) providing the service

3) such telephone is needed in row to provide the service

4) such telephone must be in name of the FIRM, or assessee

if assessee have mobile phones for use in residence and for field work of staff, it does not qualify as input service for providing taxable output service, for claiming input credit the nexus between input services and out put services is must.

CA CS Akashdeep Singh (Practicing CA) (1394 Points)
Replied 01 July 2011

Input credit on service tax paid on mobile bills of workers is available provided that it should be used for providing output service and bill should be in name of service provider

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 02 July 2011

If one is provding the taxable service liable to ST prior to the date of registration, the eleigible credit would be available as set off while paying the ST on the output services along with interest thereon.