Query regarding Service Tax Input Credit

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    CA A B YARRISWAMY New Member

    Can we take as input credit of Service Tax Paid to Supply of Man power Agency against ST Payable on Renting of Immovable property?
    Case Study: One of the City Municipality Corp. have an Income from Renting of Immovable Property. Which includes ST on Rent collected.i.e.ST Payable (Output ST). The Muncipality Corp. also have a contractors who supplies Man power required by it on contract basis and charges ST on their services. Municipality has paid Contractors payment along with ST. The Muncipality Corp. also have BSNL Bill Paid(ST paid on Telephone Bills). My question is can the City Municipality Corp. adjust its ST paid on BSNL Bills and Contractors bills which is paid against ST payable on Renting of movable property.
    If we look into the Rule of ST credit input ST paid should be directly related to output payable.
    Please help me to get the clarity on ambiguity.
  2. Shishir Nayak

    Shishir Nayak Member

    A service provider providing any taxable service can avail CENVAT credit on inputs he uses exclusively for his output service.

    For example, an interior decoration company provides interior decoration services and pays rent for its commercial office. The decoration service is output service and rent it pays for its office is input service. The service tax paid on such rent is the input credit and the same can be adjusted against the service tax payable by the company to the government.
    Manish.jaggi likes this.
  3. Mishal Soni

    Mishal Soni New Member

    Can We take Credit on Service Tax Paid on Consultancy Charge for taking Certification of ISO in Excise?
  4. rudrabose

    rudrabose Active Member

    @Mishal Soni : Yes, Credit of Service Tax can be claimed in the above mentioned case
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