Setting Off Service tax payable against Input Service Tax Credit

[Asked by 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

AI Summary

CENVAT credit treatment: verify eligibility, abatement and export/refund implications before setting off input credit against service tax payable.
Where input service tax credit exceeds service tax liability, assess entitlement to CENVAT credit before assuming full set-off; verify input-service definition, whether inputs exceed outputs (inflated service tax), and whether abatement claims, trading activities, or export/refund elections affect availability and procedural entitlement to retain, refund, or set off the credit.