TaxTMI 
TaxTMI 
Utilisation of Input tax credit
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....tilisation of Input tax credit<br> Query (Issue) Started By: - sreenadh parasaram Dated:- 9-1-2008 Last Reply Date:- 30-1-2008 Service Tax<br>Got 3 Replies<br>Service Tax<br>The input service tax credit can be utilised only to the extent of 20% of output service tax if both exempted and taxable services are provided with credit taken inputs. what happens to balance input tax credit (80%. whether i....
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....t can be used for other services 100% or not. Please give me how it can be utilised in further periods. Reply By V Ramanujam: The Reply: The balance 80% credit will not lapse and can be carried forward to subsequent months for similar adjustment against liability of subsequent months. However, no refund of such balance portion will be allowed under any circumstances. Reply By Madhukar N Hiregang....
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....e: The Reply: The important point to be noted is that if the specific input service is used only for the taxable services then 100% is available. Further there are 16 services when used in common for taxable and notaxable/ exempt services also 100% is available. The balance of the common input services in my view are to be adjusted to the extent of 20% of the output tax and balance carried forward....
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..... It maybe wise to have each of the credit account differently. Reply By CA Shirish Nagchandi: The Reply: The balance amount of credit input(80%)can be carried forward to next quarter/half year and added to the credit availed during the next period and again 20 % of it can be utilised to meet out service tax liability.In any case there will not be any refund.<br> Discussion Forum - Knowledge Shari....
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