Credit of service tax paid on software(online portal) maintenance charges

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  1. Bhavik Adani

    Bhavik Adani New Member

    Dear Sir/madam,

    My query is,

    My client is a tour operator and he is collecting service tax of 1.4% and paying the same to the government. Now he has started new online portal for bookings so he is paying monthly maintenance charges. He is paying service tax on such maintenance charges. So my query is can he take credit of service tax paid on software maintenance charges?
    Please do the needful.
  2. Yashveer Jain

    Yashveer Jain Member

    Dear Bhavik,
    Under which rule he cannot take the credit!?

    According to me he can take the credit unless it is from the same person that is your client.

    [email protected]
  3. Bhavik Adani

    Bhavik Adani New Member

    Dear Yashveer,

    So according to you I can take credit ryt?

    I just want to confirm 1 thing. We are collecting ST @ 1.4% and on software maintainance charges we have to pay St @ 14% so can i take credit of 14% against ST of 1.4% which i have collected?

    For ex. I have collected ST of Rs. 1,00,000 /- @ 1.4% from my clients and I have paid Ser Tax of Rs. 60,000/- @ 14% as software maintainance charges. So now I have to pay only balance Rs. 40,000/- to government. Please correct me if I am wrong.

    And can I take credit of Ser Tax paid on electricity bill and telephone bill? and if you have any supporting documents or link regarding taking service tax credit please forward me.

    Thanks & Regards,

    Bhavik Adani.
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