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Issue ID : 106460
- 0 -

Service Tax

Date 24 Jan 2014
Replies6 Answers
Views 1222 Views
Asked By

Dear Sir,

We r  getting security services and provider collecting 25 percent from us and paying the Dept.and balance 75 percent paid by us to the Dept.. Now  my question is shall we claim credit of total 100 percent or only 75 percent ? Pls clarify. 

Thanks

6 answers
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Old Query - New Comments are closed.

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- 0
Replied on Jan 24, 2014
1.

Dear Sir,

You can avail CENVAT credit for both.  But for the credit for the reverse charge ( i.e., 75 percent ) can be availed only after making payment to the Department.

Regards,

M. Govindarajan

- 0
Replied on Jan 25, 2014
2.

Dear Mr.Rao

 You can Avail 100 percent Credit  of service tax paid on Security service(25 percent on the bill of Security Agency & 75 percent on the basis of GAR-7 Challan)

Shivkumar Sharma

- 0
Replied on Jan 25, 2014
3.

Yes u can.

but Some exception are there.

- 0
Replied on Jan 27, 2014
4.

Dear Sir,

What r the exception?

- 0
Replied on Jan 27, 2014
5.

I dont think exception are applicable in your case. still for your information 

In General, If your Output service is exempted from tax in this case you cant get the input of the service. 

if your input service is not in relation with the output service in that case you again are not entitled for the input credit.

So yes you can get the Input on 75 percent on basis of Invoice,25 percent on basis of Challan

Note: you have to deposit 25 percent first, you cant adjust your input against this amount of 25 percent .

- 0
Replied on Feb 11, 2014
6.

Dear Mr  MARIAPPAN GOVINDARAJAN 

In your post dated 24-01-2014 you have stated that

"the credit for the reverse charge (i.e., 75 percent) can be availed only after making payment to the Department.". Kindly specify the Law (Rules, Notification, circular, instruction etc.) for this provision. Also if the input service credit is availed & utilised before making payment to the Department, what are the consequences.

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