Setting Off Service tax payable against Input Service Tax Credit

[Guest]

My input service tax credit amount is more than the actual service tax payable by me.  I am not sure whether I can set off the entire service tax payable against my input service tax credit (some people are advising me that there is a cap on setting off input ax credit in terms of %age).  As every month my input service tax credit is more than the actual service tax payable, please advise me as to what amount I can set off and what is the mandatory tax payable.

 

thanks and regards,

Sivakumar S

[YAGAY andSUN]

Please check the following aspects, namely:

1. Whether you are availing the CENVAT credit on the Input Services as per the amended definition of the the Input services or not?
2. Whether you fall under the catergory of Inflated Service Tax i.e. Tax on input services are more than of output services?
3. Whether there is any export of services?
4. Whether you had applied for exemptions and refund for the input services under the provisions of export of services or not?

[JAMES PG]

Claiming abatement for  payment of Service Tax and availing Cenvat credit, carrying on  Trading activity  also to be looked into.

AI Summary

Can Service Tax Payable Be Fully Offset by Input Credit? Check CENVAT Rules and Export Exemptions. An individual inquired about setting off service tax payable against input service tax credit, noting that their input credit exceeds the actual tax payable. They sought advice on whether they could fully offset the tax payable, as some advised there might be a percentage cap. Respondents suggested checking compliance with CENVAT credit rules, determining if the service tax on input services exceeds output services, and considering export-related exemptions or refunds. Additionally, they advised examining abatement claims, CENVAT credit usage, and any trading activities involved.