TMI BlogUtilisation of Cenvat credit against service tax payable on advance receipts-regX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir This is regarding the service tax payable on Advance payment received. I need to have the clarification on the following:- 1. Can we adjust the CENVAT credit against the Service tax payable on advance payment received against the taxable services to be rendered. 2 When we render both the taxable and non taxable service , my understanding is that, the service tax paid on input servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es can be utilised for payment of service tax on taxable services as given below: a) The input services which is exclusively used for taxable output servicees, The entire service tax paid on input services are eligible for input credit and the same can be adjusted against the tax payable on output servies. b) The input services which is exclusively used for non taxable services, the entire se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice tax paid on input services are not eligible for input credit and the same can not be adjusted against the tax payable on other taxable services c) The input services which is used as common input services, the service tax paid on the same can be taken proportionately and utilise for the payment of service tax on output services. Pl clarify, the above is in line with the provisions of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice tax rules. 3) I am rendering the following services : a) Consultancy services b) Erection services Discharging the service tax liablity @12.36% from 01.04.2012. My question is: 1. The service tax paid on input service ( Consultancy services ) avaiable excess now, Is it possible to adjust the cenvat credit against service tax payable on Erection services I shall be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hankful if you could clarify my question one by one. Regards N.Balachandran - Reply By Yash Goyal - The Reply = -Yes you can adjust the cenvat credit against advance received for taxable services. -Input service may be received for providing any output service. Cenvat credit on it can be used to pay service tax on any taxable service provided. So excess credit of consultancy servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e can be used for paying service tax on erection services. Regards Yash Goyal - Utilisation of Cenvat credit against service tax payable on advance receipts-reg - Query Started By: - N Balachandran Dated:- 24-4-2012 Service Tax - Got 1 Reply - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nagement - 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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