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TMI BlogOne to one correlation - input and output serviceX X X X Extracts X X X X X X X X Extracts X X X X ..... One service provider X is registered in two output service A and B . Suppose tax liability on output Service A is Rs.10000/- but no Cenvat credit available against output service A . Similarly Suppose tax liability on output Service B is Rs.Nil but Cenvat credit available against output service B is Rs.4000/- Whether X can adjust the Cenvat credit of Rs. 4000/- availed on output service B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the tax liability of Rs. 10000/- arose on output service A and pay balance amount of Rs. 6000/- or Whether X has to pay Rs. 10000/- tax liability as occurred against output service A and carry forward the Cenvat credit of Rs. 4000/- occurred against service B and adjust it only from tax liability of output service B only. i.e. for adjustment of Cenvat credit one to one relation se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice wise is necessary and Cenvat credit can be claimed against that output service against which the same has been occurred. Thanks Regards - Reply By Markesh Antony - The Reply = There is no need to have one to one correlation. But, why there is NIL service tax on output service B. If the zero liability due to time factor like no receipt during the relevant period, you can avail the credit c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrectly on both the service. But if the service B is exempt or not taxable otherwise, the credit related to B is not allowed. You need to ascertain the facts and circumstances. - Reply By R.S. Mangal - The Reply = Yes, the service provider "x" can pay service tax on output service "a" from cenvat credit availed on input service related to output service "b" provided service "b" is not exempted. t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no requirement of one to one corelation of cenvat credit utilization for payment of service tax/excise duty from cenvat credit availed on input services/inputs. - Reply By Prasanna Kumar - The Reply = You have said X has obtained two out put service A adn B. It is not clear either in one registration certificate or in one premises and in the name of one company or firm. However, please no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te there is no one to one correlation required to set off Cenvat Credit of input services against two different services of a same firm or establishment. The Input Service Distributor is coined on the same principle. - One to one correlation - input and output service - Query Started By: - RAJESH MANGAL Dated:- 22-9-2009 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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