cenvat on bus service

[sarat sahoo]

Sir

Cenvat credit can be allowed on bus service,renting of bus to carry student by a commercial institute or not

AI Summary

Cenvat Credit Not Allowed for Rented Bus Services for Student Transport if Abatement Availed Per Notifications & Rule 2(l)(B). A query was raised about the eligibility of Cenvat credit for bus services rented by a commercial institute to transport students. The consensus among the respondents was that Cenvat credit is not admissible if abatement is availed, as per Notification No. 26/12-ST and Notification No. 30/12-ST. Additionally, according to Rule 2(l)(B) of the Cenvat Credit Rules, 2004, services related to renting a motor vehicle, which is not considered capital goods, do not qualify as 'input service,' thus disqualifying the service tax credit.