Restorant Service

[MUNIRAJ SRINIVASAN]

My Client has running Restorant Services is paying Service Tax at the rate of   4.94 whether is eligible to take Service Tax input credit benefit ?

[Mahir S]

It depends under which chapter of the central excise tariff act, 1944  the inputs are falling and also its applicability in terms of various provisions of cenvat credit rules 2004.

You name the input and its admissibility/non-admissibility shall be replied. 

 

 

 

[Mahir S]

for purpose of understanding on the topic, also refer to the definition of the Input Services w.e.f. 01-04-2011 vide notification no. 3/2011-CE (N.T) dated 01-03-2011.

AI Summary

Cenvat credit eligibility depends on classification of inputs under the Central Excise Tariff and Cenvat Credit Rules. Cenvat credit eligibility for a restaurant depends on classification of each input and input service under the Central Excise Tariff and their admissibility under the Cenvat Credit Rules; determination requires identifying the particular inputs/services used and analysing them against tariff headings and the post-notification definition of Input Services to decide credit entitlement.