Please Help: Service Tax Input
Posted Date : 01-Apr-2014 , 09:53:12 pm | Posted By: Babita
Category :
Service Tax | Answers :
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Comments :
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Can bank take 100% input on service tax charged by the auditor in audit.
Kindly quote relevant section or rule if possible.
Reply ASAP.
Thanks in advance. |
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| Comments |
| Posted By : |
03-Apr-2014, 12:51:05 |
| Thanks Mr. Sarthak Jain,
Thanks Mr. Mohit Goyal,
In a nutshell bank can take only 50% credit on service tax input. As for my understanding it is applicable for every input,whether it is on auditors fees , on telephone bills or on any other input.
Now question is where to account this input.In the books of HO or branches are also eligible for this credit through ISD |
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| Posted By : SARTHAK JAIN |
03-Apr-2014, 01:23:09 |
| Hi,
Yes, banks can take entire amount of service tax charged by Auditor as auditing is defined as an eligible input service under rule 2(l) of the Cenvat Credit Rules, 2004 for the purpose of availing input credit. Rule 2 (l), inter alia, provides that "input service means.......and includes services used in relation to....activities related to business such as accounting, auditing....". Therefore, service tax charged on such services constitute eligible input for the service recipient.
Hope this clarifies. |
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