SET OFF SERVICE TAX WITH PAYABLE AND RECEIVABLE SERVICES, Service Tax

[MITESH SHAH]

We are a limited company with around 7 crore turnover.

We are service provider providing Manpower Recruitment services as well as Packaging services. We have a liability to pay service tax for August 2012 services rendered.We have established a project where we are taking installation services, maintanence services for our machinery installed. This amount comes to us around 196000.  Now, my question is can we take set off of service tax payable against services tax receivable  ?

If yes, how do we have to show for service tax filling.

MITESH SHAH

98242 13723

Posts / Replies

[Pradeep Khatri]

As per the provisions of CENVAT credit Rules, 2004 you may avail the CENVAT credit and adjust it with your output liability as there is no requirement to show the one to one correlation.