Utilisation of Input tax credit

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..... The input service tax credit can be utilised only to the extent of 20% of output service tax if both exempted and taxable services are provided with credit taken inputs. what happens to balance input tax credit (80%. whether it can be used for other services 100% or not. Please give me how it can be utilised in further periods. - Reply By V Ramanujam - The Reply = The balance 80% credit will not .....

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..... lapse and can be carried forward to subsequent months for similar adjustment against liability of subsequent months. However, no refund of such balance portion will be allowed under any circumstances. - Reply By Madhukar N Hiregange - The Reply = The important point to be noted is that if the specific input service is used only for the taxable services then 100% is available. Further there are .....

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..... 16 services when used in common for taxable and notaxable/ exempt services also 100% is available. The balance of the common input services in my view are to be adjusted to the extent of 20% of the output tax and balance carried forward. It maybe wise to have each of the credit account differently. - Reply By CA Shirish Nagchandi - The Reply = The balance amount of credit input(80%)can be carried .....

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..... forward to next quarter/half year and added to the credit availed during the next period and again 20 % of it can be utilised to meet out service tax liability.In any case there will not be any refund. - Utilisation of Input tax credit - Query Started By: - sreenadh parasaram Dated:- 9-1-2008 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an exp .....

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..... ert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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