Service Tax Input Credit
Guest
(Querist) 04 July 2009
This query is : Resolved
My Client is registered with Department wef 1-7-2008. He got registered without waiting for Exemption Limit.
For the year 2008-2009, he didnt provide any services however he paid Service Tax i\on various services availed and that amount has been showed as Credit in ST3.
At the end of first year he has a credit of Rs. 100000/-
Now during these first quarter of 2009-2010 he has collected service Tax of Rs. 500000/-.
Shall he deduct teh amount of Credit? Will he get this credit, especially bcoz no services were provided during last year and credit were taken but not utilized.....
If u can provide some case law etc. for this, i would b grateful to u for the same.
Rgds,
