CREDIT ON MANPOWER SUPPLY

[SURYAKANT MITHBAVKAR]

We are Body of Corporate paying 100% service tax liability as reception. Can we avail service tax credit for the same against our excise duty payment.

[DR.MARIAPPAN GOVINDARAJAN]

You may take the credit if the said service is input service for manufacturing purpose.

[Ganeshan Kalyani]

I agree with Mariappan Sir reply. Further you have to be carefull in terms of whether your final product is taxable or exempt before taking credit. Should you need any clarification please write your query.

AI Summary

Cenvat credit on manpower supply: usable if the service is an input to manufacture, subject to final product taxability. Credit for service tax paid on manpower supply is permissible where the service qualifies as an input service for manufacture; the taxpayer must confirm that the final product is not exempt, since an exempt final product may restrict use of that credit against excise duty.