Input Credit, Service Tax

[Indrajit Mondal]

Dear Sir,

This is a query regarding input credit as I heard some one senior guy who is working also in a construction company in senior position of Account & Taxation.

He said to me we cannot take input credit under RCM on GTA further he also told me that as RCM on GTA calculate on abatement value so you cannot take input credit and he said you take Service Tax Expenses A/c (under P/L a/c) (Dr) instead of Service Tax Input credit A/c (under Current Liability), where as fer my little knowledge I know RCM input can credit against payment of liability direct to Govt.

Sir please reply as now I'm just little confused after hearing the same from the senior guy...

Posts / Replies

[KASTURI SETHI]

You cannot take credit on material like cement, iron products etc. for providing construction service but you can take credit on input services like ST paid on freight, architect service etc. Can you provide construction service without these input services ?

[Himansu Sha]

Credit do not depend upon abatements.

[MUKUND THAKKAR]

Are you paying RCM on GTA for what Inward or out ward ? please Clarify.

[Indrajit Mondal]

Dear Sir,

We will use freight inwards service for cement/steel/sand/stone chips for our various sites.

[Himansu Sha]

Input service credit for inward transportation of raw materials available

[Indrajit Mondal]

Thanks Himansu Sir,

Sir can you help me to find out the entry which i mentioned earlier in this post like Service Tax exp instead of Service Tax input as one of senior said to me..

[Himansu Sha]

It is to be adjusted against the liabilities. You know what I am going to tell about.