TaxTMI 
TaxTMI 
We are basically mafr's of Pre fab Building and taking Service tax credit of Sercurity services, Man power, Banking charges, telephone charges etc and paying some times against Erection & Commission of our material and some times tranfering to Excise credit. Is is necessary to Co-relate the input service tax credit with output services and Can't we avail the said service tax credits?. Pleaes clarify.
Correlation of input tax crdit with output
07 Sep 2009 
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Input service tax credit not required to be correlated with output services; entitlement hinges on documentary compliance.
The Cenvat Credit Rules define input service illustratively, so input service tax credit need not be correlated with specific output services; credit may be availed provided documentary and other Rule requirements are satisfied. However, cenvat credit of excise duty on building materials such as cement, TMT bar, angle and channel has been restricted by amendment and is not permissible from the amendment's effective date. (AI Summary)
The Cenvat Credit Rules define input service illustratively, so input service tax credit need not be correlated with specific output services; credit may be availed provided documentary and other Rule requirements are satisfied. However, cenvat credit of excise duty on building materials such as cement, TMT bar, angle and channel has been restricted by amendment and is not permissible from the amendment's effective date. (AI Summary)