About Service tax set off

[Guest]

Dear Sir/Mam,

Our creditors charged service tax on labour charges and our co. is engaged in manufacturing of M.S. plates... can we set off service tax against excise duty????? but we not registered for service tax.

[Arun Kumar Singh]

Yes, you can pay the excise duty from input services. The registration of service tax is not required.

AI Summary

Service tax setoff: input services may be used to discharge excise duty; registration for service tax not required. Service tax paid by suppliers on labour charges may be utilised to discharge excise duty by treating those charges as input services; the manufacturer need not register for service tax to take such input services into account against excise liability.