Input tax credit - Manufacturer

[DINESH AGGARWAL]

As per the provision of Rule 3(1)(ii) of  Cenvat Credit Rule, 2004, as a manufacturer,we are not entitle to take input tax credit of service tax charged by Courier company,authorised station service providers and SHIPPING AGENCIES in their invoices. We received a audit objection by our Central Excise Internal Auditors.

Dinesh Aggarwal

Dear Sachin, As per Provision of CENVAT Credit Rules, 2004 you can take CENVAT Credit on above service but these should be fall in the category of Input Service. Please write an email for further detail on my email id [email protected]

AI Summary

Input Service eligibility determines whether manufacturers may claim CENVAT credit for courier and shipping services under Rule 3(1)(ii).
Entitlement to CENVAT credit for service tax charged by courier companies, authorised station service providers and shipping agencies hinges on whether those service charges qualify as Input Service under Rule 3(1)(ii) of the Cenvat Credit Rules, 2004; an internal audit objected to credit, and the adviser states such services can qualify as input services if they meet the statutory criteria and documentary requirements.