Input credit for Input Distributor service provider

[Asked by 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.

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

AI Summary

Input tax credit documentation: ensure service providers receive invoices showing assessable value and service tax separately for credit.
Where bank advices state charges as service tax inclusive without separate values, the bank should issue a document, challan, statement or proper invoice evidencing payment and showing assessable value and service tax separately so an Input Distributor service provider can identify the tax component for input credit.