Service Tax

[Gopal B]

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

AI Summary

Input Service Credit: both provider-collected and reverse-charge components allowed, but reverse-charge credit only after payment to revenue.
Credit may be claimed for both the provider-collected portion and the reverse-charge portion of service tax on security services, but credit for the reverse-charge component can only be availed after the recipient makes the required payment to the revenue authority. Exceptions bar credit where the recipient's output services are exempt or where the input service is not related to the taxable output. The provider-collected portion must be deposited and cannot be adjusted against the recipient's input credit; availing reverse-charge credit prior to payment may attract consequences.