TMI BlogService Tax Credit Rules, 2002X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1994 (32 of 1994) (a) "output service" means any taxable service rendered by the service provider to a customer, client, subscriber, policy holder or any other person, as the case may be; (b) "input service" means any 2 service received and consumed by a service provider in relation to rendering of output service; 3. Service tax credit.- 3 [(1) An output service provider shall be allowed to take credit (hereinafter referred to as service tax credit) of the service tax paid on input service in the following manner, namely:- (a) where the input service falls in the same category of taxable service as that of output service, service tax credit shall be allowed to be taken on such input service for which invoice or bil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port trust and provides such labour to his client. In this case the service provided, by the port trust to stevedore and by stevedore to client, both fall in the category of port service. Therefore, stevedore is entitled to take credit of service tax paid by the port trust. (iii) An advertising agency may avail services of a photography studio and/or a sound recording studio and/or a video tape production agency during the course of rendering service to it's client. Service provided by the photography studio or the sound recording studio or the video tape production agency, as the case may be, does not fall in the category of advertising agency service. Therefore, advertising agency is not entitled to take credit of service tax paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y output service only to the extent of an amount not exceeding thirty-five per cent. of the amount of service tax payable on such output service.] 6 [(6) Service tax credit on the service provided in relation to telephone connection shall be allowed only in respect of such telephone connections which are installed in the premises from where output service is provided.] 4. Utilisation of service tax credit.- (1) The service tax credit availed on input service may be utilised for payment of service tax on the output service. 1 [Provided that while paying service tax on the output service, the service tax credit shall be utilized only to the extent such credit is available on the last day of a month, for payment of service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices on which the service tax, as indicated in the documents on the basis of which credit is availed, has been paid. Explanation: The output service provider availing service tax credit shall be deemed to have taken reasonable steps, if he satisfies himself about the identity and address of the input service provider, issuing the documents on the basis of which the service tax credit is availed and that the details regarding description and value of input service received by him has been furnished correctly in the documents. (3) The output service provider availing service tax credit shall maintain proper records in which the relevant information regarding the Sl. No. and date of document on which service tax credit is availed, se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 [(a) Output service (a) Description of output services in relation to rendering of which the input services are consumed: (b) Whether separate account is maintained for receipt and consumption of input service meant for consumption in relation to rendering of output services which are taxable or exempted or non-taxable service: Yes/No.] Place:- Date :- Name and signature of the assessee or his authorised representative". *********************** Note : 1. Has been inserted vide Notification No. 1/2003 dated 1/3/2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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