Input credit for Input Distributor service provider

[Guest]

Bank had issued the general internal circular to its client on Bank Charges and commission in which they have stated service tax inclusive. while issuing the advice bank donot mention assessable value and service tax separately. Query: will we get input credit for Input Distributor service provider, bank is exempted from invoice numbering and provider name and not other procedure mentioned in rule 4A and manual practise procedure chapter no 17 (B) Invoicing.

[Surender Gupta]

You may request your bank to issue a to issue a document / challan / statement indicating the assessable value and service tax separately.

[Guest]

Banks should proper invoice / challan / note etc. evidencing the payment of service tax alongwith assessable value.

AI Summary

Clarification on Input Credit Eligibility When Banks Don't Itemize Service Tax; Request Detailed Invoices for Compliance. A query was raised regarding the eligibility for input credit from an Input Distributor service provider when banks include service tax in their charges without separately listing the assessable value and service tax. The issue is complicated by banks being exempt from certain invoicing rules. Two responses advised requesting the bank to issue documentation that clearly separates the assessable value and service tax. This would ensure compliance with input credit requirements, despite the bank's exemption from some invoicing procedures.