SET OFF SERVICE TAX WITH PAYABLE AND RECEIVABLE SERVICES

[MITESH SHAH]

We are a limited company with around 7 crore turnover.

We are service provider providing Manpower Recruitment services as well as Packaging services. We have a liability to pay service tax for August 2012 services rendered.We have established a project where we are taking installation services, maintanence services for our machinery installed. This amount comes to us around 196000.  Now, my question is can we take set off of service tax payable against services tax receivable  ?

If yes, how do we have to show for service tax filling.

MITESH SHAH

98242 13723

AI Summary

Company Can Offset Service Tax Liability Using CENVAT Credit for Input Services Under CENVAT Credit Rules, 2004 A company with a turnover of around 7 crore, providing manpower recruitment and packaging services, inquired about setting off service tax payable against receivable services. They have a service tax liability for services rendered in August 2012 and are incurring costs for installation and maintenance services for machinery. The query was whether they could offset this tax. The response indicated that under the CENVAT Credit Rules, 2004, they could avail CENVAT credit to adjust their output liability without needing to demonstrate a direct correlation between input and output services.