Input service credit

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..... Input service credit
Query (Issue) Started By: - Sanjeev Chauhan Dated:- 1-12-2013 Last Reply Date:- 3-12-2013 Service Tax
Got 1 Reply
Service Tax
Respected Sirs, Please guide, One p. ltd. co. is a builder and engaged in Construction of Residential Complexes. The said co. is paying brokerage charges to broker for sale of flats and taking credit of service tax paid on brokerage by th .....

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..... e broker. Also, the co. is engaged in providing project management & consultation services to other builders and using the same service of the said broker for sale of flats of other builders. Now, the service tax department is saying that the s.t. paid on brokerage charges does not fall under the definition of input services and thus not eligible for taking credit. Is the co. is eligible to .....

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..... take credit of the said input service or not. Regards. Reply By A Wilson: The Reply: Dear Sir, Generally, whatever the input services used for providing output services are eligible for Input Credit. Here the service tax paid on Brokerage is used for providing two types of Services. * One is for Sale of Company Owned Flats under Construction Service * And other is for sale of other comp .....

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..... any Flats under Project Management & Consultation Service. So to avoid unnecessary litigation, you may get two separate brokerage bills from the Broker with relevant details to prove these are relating to the particular Services and can be take credit for each services separately. Thanks & Regards, A.Wilson
Discussion Forum - Knowledge Sharing .....

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