First of all we should find out are we really eligible for 
such credits. If so, what ever Service Tax we have paid in 
out payments viz., on Telephone Bils, Credit Carsd Bills, 
Tourist cab bills etc., i.e wherever/whatever servicetax 
paid by us bills should be taken carefully.
Steps: aa) Take xerod copies of all the bills.
       bb) ascertain the amounts and total for the  
expenses viz., service tax charged in that bill & paid to 
the vendor.
       cc) its better to aopen an excel sheet and fill & 
update all the bills' data on service tax.
       dd) sum up and assign the total for the period say 
for that particular month.
Second Stage: Suppose your Service Tax due is Rs: 23585/- 
for a partifular month and you have paid service tax for 
the services you have enjoyed - thro' vendor's bill and the 
total is as per statement (dd) is say Rs : 3585/-  You may 
remit Rs: 20,000 (net) But you have to keep the xerox 
copies of the bill which is required at the time of 
scrutiny/assessment. But you can send a details statement 
(excel sheet) at the time of monthly return.
Most important thing : while accounting the above you 
should not book the entire expense since you are going to 
enjoy the input credit of service taqx expenses treatment 
should be given accordingly other wise it will affect P & L

SERVICE TAX CREDIT MEANS THE INPUT SERVICE TAX I.E THE TAX 
WHICH WE HAVE PAID ON HOUSE KEEPING BILLS, TELEPHONE 
BILLS,CREDIT CARD BILLS,SECURITY BILLS,laundry ETC.,

PAYMENT FOR THE ABOVE BILLS WE WILL GET IN PUT SERVICE TAX
RAISING SERVICE BILLS TO CUSTOMER WE WILL GET OUTPUT 
SERVICE TAX

OUT PUT SERVICE TAX - INPUT SERVICE TAX = SERVICE TAX 
PAYABLE

INPUT TAX ON EXCISE CAN ALSO BE TREATED AS INPUT SERVICE 
TAX CREDIT AS PER SERVICE TAX ACT.

First of all we should find out are we really eligible for 
such credits. If so, what ever Service Tax we have paid in 
out payments viz., on Telephone Bils, Credit Carsd Bills, 
Tourist cab bills etc., i.e wherever/whatever servicetax 
paid by us bills should be taken carefully.
Steps: aa) Take xerod copies of all the bills.
       bb) ascertain the amounts and total for the  
expenses viz., service tax charged in that bill & paid to 
the vendor.
       cc) its better to aopen an excel sheet and fill & 
update all the bills' data on service tax.
       dd) sum up and assign the total for the period say 
for that particular month.
Second Stage: Suppose your Service Tax due is Rs: 23585/- 
for a partifular month and you have paid service tax for 
the services you have enjoyed - thro' vendor's bill and the 
total is as per statement (dd) is say Rs : 3585/-  You may 
remit Rs: 20,000 (net) But you have to keep the xerox 
copies of the bill which is required at the time of 
scrutiny/assessment. But you can send a details statement 
(excel sheet) at the time of monthly return