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

[Rajagopalan Ranganathan]

Sir,

if the water supplied by the bore well is utilised for carrying out manufacturing process of dutiable excisable goods then service tax paid for repairing the bore well can be availed as input service credit. If it is used for consumption of the people working in the factory then in my opinion you are not eligible to avail the credit.

[MUKUND THAKKAR]

agree, with view of Rajagopalan Ranganathan sir.

[LOKENDRA SEHRAWAT]

thanks sir

AI Summary

Input service credit eligibility: repair service tax on a bore well depends on whether water is used in manufacturing or for staff consumption. Service tax paid on repair of a bore well is eligible as input service credit when the water supplied is used in the manufacture of dutiable excisable goods; where the water is used for consumption by factory personnel, the service tax on repair is not eligible as input service credit.