service tax on bore well

[LOKENDRA SEHRAWAT]

whether service tax paid by a manufacturing co. on repair of bore well is allowed as input credit or not

AI Summary

Service tax on bore well repairs is input credit if water is used in manufacturing dutiable goods, not for employee use. A manufacturing company inquired whether service tax paid on bore well repairs qualifies as input credit. An expert responded that if the bore well water is used in the manufacturing process of dutiable excisable goods, the service tax can be claimed as input service credit. However, if the water is for employee consumption, the credit is not eligible. Another participant agreed with this interpretation, and the original inquirer expressed gratitude for the clarification.