TaxTMI 
TaxTMI 
Service Tax Credit Rules, 2002
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.....- (1) In these rules, unless the context otherwise requires,- (a) "Act" means the Finance Act, 1994 (32 of 1994) (a) "output service" means any taxable service rendered by the service provider to a customer, client, subscriber, policy holder or any other person, as the case may be; (b) "input service" means any ^2service received and consumed by a service provider in relation to rendering of output service; 3. Service tax credit.- ^3[(1) An output service provider shall be allowed to take credit (hereinafter referred to as service tax credit) of the service tax paid on input service in the following manner, namely:- (a) where the input service falls in the same category o....
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....efore, photography studio is entitled to take credit of service tax paid by the processing lab. (ii) A stevedore hires dock labour from the port trust and provides such labour to his client. In this case the service provided, by the port trust to stevedore and by stevedore to client, both fall in the category of port service. Therefore, stevedore is entitled to take credit of service tax paid by the port trust. (iii) An advertising agency may avail services of a photography studio and/or a sound recording studio and/or a video tape production agency during the course of ....
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....the service provider, opts not to maintain separate accounts of input service meant for consumption in relation to rendering of such output services which are chargeable to service tax as well as exempted services or non-taxable services, he shall be allowed to utilize service tax credit for payment of service tax on any output service only to the extent of an amount not exceeding thirty-five per cent. of the amount of service tax payable on such output service.] ^6[(6) Service tax credit on the service provided in relation to telephone connection shall be allowed only in respect of such telephone connections which are installed in the premises from where output service is provided.] 4. Utilisation of service tax credit.- (1) The serv....
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....nd value of the input service, the service tax paid /payable, service tax registration No. and address of input service provider. (2) The output service provider availing service tax credit shall take reasonable steps to ensure that the input services in respect of which he has availed the service tax credit are the services on which the service tax, as indicated in the documents on the basis of which credit is availed, has been paid. Explanation: The output service provider availing service tax credit shall be deemed to have taken reasonable steps, if he satisfies himself about the identity and address of the input service provider, issuing the documents on the basis of which the service tax credit is av....
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....of document on which credit is availed Details of input service provider Details of input service ST regd. No. Address Description Value Credit taken Service tax credit Opening balance Credit taken Credit utilised Closing balance ^7[(a) Output service (a) Description of output services in relation to rendering of which the input services are consumed: (b) Whether separate account is maintained for receipt and consumption of input service meant for consumption in relation to rendering of output services which are taxable or exempted or non-taxable service: Yes/No.] Place:-  ....