Payment of Service tax collected for exempted services can take as Input tax credit?



A Service provider charges Serv Tax to an exempted service (eg SEZ), whether the collected service tax should pay to the government or can us as Input credit. If there is any section or rules, kindly mention the rule and section.

Payment of Service tax collected for exempted services can take as Input tax credit?
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3 Replies to “Payment of Service tax collected for exempted services can take as Input tax credit?”

  1. Any of the services provided to developer of special economic zone(SEZ)or a unit of sez is exempted from service tax … but, if the service provider charges tax on it then, under service tax law it should be deposited with the government. and such tax can be adjusted at later point of time


  2. No you cannot use that amount as Input Tax Credit.
    Sextion 73A (Excess Collection), clearly states that, where any person who has collected any amount, which is not required to be collected, from any other person, in any manner as representing Service Tax, such person should immediately pay the amount so collected to the credit of the Central Government.


  3. It is also equally good if you refund the service tax to the persons from whom it was collected and keep safe the supporting of refund.





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