Vat and excise for service industry
Sathish
(Querist) 14 June 2012
This query is : Open
Hi,
Our company is providing service related engineering, accounting and others (Export & Domestic). As such we are registered under VAT and Service tax. This particular question pertains to service tax and TN VAT providing services.
We are providing services to our clients and raising invoice on the services provided. But while providing these services we need to buy certain "input" raw materials/components/Computer (Capital) and use them by either designing, building a prototype (proof of concept) and/or testing them (R&D) to render the service. Buying such "input" components incurs excise duty, import duty and/or VAT. Since these material are brought for the sole purpose of providing services,
we would like to know whether the duties & VAT incident on these "input" material can be taken as credit in service tax & VAT account? If so please clarify what rule/notification allows this.
Regards
Sathish
