Please Help: Input Tax credit
Posted Date : 21-Apr-2011 , 06:49:52 am | Posted By Amrish Gupta
We are an insurance company and collect service tax on insurance premium from policyholders. We pay commission to insurance agents for selling policies. We also pay service tax on the insurance commission. My query is: whether we can take credit for the s
Category : Service Tax | Answers : 2 | Comments : 8 | Hits : 1155
Answers
Answer By: CA VIKAS JAIN
Answer By: Mrattunjay
Yes
Comments
sahil rastogi
21-Apr-2011 , 07:33:27 amin my opinion credit for the same is not available as it is not input service
Amrish Gupta
21-Apr-2011 , 12:49:53 pmSahil it is an Input service & i am confident about that.Moreover i got the answer of my ques & the answer is 'YES we can claim Credit of such payment". This is the case of Reverse charge
sahil rastogi
22-Apr-2011 , 09:03:21 pmAmrish i feel you cannot take credit as at one your service is in nature of service provider and at other hand service recipient
Amrish Gupta
23-Apr-2011 , 03:35:59 amSahil i already discussed this matter with CA Ashok Batra (one of the renowned author of service tax) & he has the same view which i am having, so now there is no question of non availment of the credit.
CA. MANISH MALHOTRA
23-Apr-2011 , 12:42:25 pmAccording to me you can take credit because as per rule 2(I) of cenvat credit rules, 2004. input service" means any service,- used by a provider of taxable service for providing an output service; or used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal Concl. On the basis of above rule u can take credit
Future.accountant
23-Apr-2011 , 04:48:14 pmagree with manish
Amrish Gupta
25-Apr-2011 , 05:09:00 amThanks to all for such discussion.................
jagmohan rawat
31-May-2011 , 01:12:40 amThe point to remember is that the input service tax claim would be available on payment of service tax only.