Availment of credit on specified 16 services and 20% of amount of tax payable on the output services, Service Tax

[vijay chitte]

As per your repply in ID No.102 rega, We have fall under GTA services and we have to pay the tax on transportation only, we are not a service provider, we are eligible for credit(specified 16 services and 20% of the amount of tax payable on the out put services)? and not maintained separate account, can we take a credit?

Posts / Replies

[Surender Gupta]

The definition of input services means, any service used to provide output service. Therefore, it is very much difficult to find the input services on which you may be eligible to avail the credit of service tax. However, on the contrary, the definition of input service is inclusive one and you are entitled to avail the sevice tax on the input services eligible in accordace with the inclusive clause. Hence, you are required to find the input services first and then applicablity of section 6(5) and 6(3) as the case may according to the input services. You can follow both the procedures simultaneously and avail the 100% credit on the 16 services and upto 20% on the remaining services if utilised in the taxable and exempted both.