Service tax credit on Input Services

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....ervice tax credit on Input Services<br> Query (Issue) Started By: - Ashok Jain Dated:- 21-4-2006 Last Reply Date:- 3-1-2009 Service Tax<br>Got 2 Replies<br>Service Tax<br>Sir, 2% of our total receipts....

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.... attract service tax and balance 98% sales are covered under VAT/CST and on this 98% sales no service tax is payable.Can we take full credit of service tax paid on input services like telephones,CA se....

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....rvices, security services etc. for this 2% reciepts. Thanks and Regds Reply By harsh: The Reply: It is immaterial to proportionate the Service tax paid by you on the 2% percent of your total recepit....

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....s,full credit of service tax on input services can be taken on your total service tax received. Reply By A RAVINDRA: The Reply: Mr. Harsh is wrong. If you are paying CENVAT then only you can avail 100....

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....% input credit. Other wise you have to take proportionaltly. Generally it is 20% of the service tax paid by you on your input services. But if any input service availed by you is exclusively for disch....

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....arging out put service(to be established propery) then you can avail 100% credit on such exclusive input services.<br> Discussion Forum - Knowledge Sharing ....