TaxTMI 
TaxTMI 
Cenvat Credit in respect of Input services
17 Jun 2006 
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Cenvat credit on input services allowed when inputs directly support taxable output, subject to apportionment for non taxable use.
Cenvat credit is available on business input services such as insurance, telephone, vehicle hire and mobile services under the Cenvat Credit Rules, 2004, provided there is a direct nexus between the input service and the taxable output; where non-taxable outputs exist, an apportionment limitation reduces admissible credit and claimants must substantiate use of inputs in delivering taxable services. (AI Summary)
Cenvat credit is available on business input services such as insurance, telephone, vehicle hire and mobile services under the Cenvat Credit Rules, 2004, provided there is a direct nexus between the input service and the taxable output; where non-taxable outputs exist, an apportionment limitation reduces admissible credit and claimants must substantiate use of inputs in delivering taxable services. (AI Summary)
A person who is registered with service tax and rendering taxable services and Trading of goods ( liable to VAT / sales Tax ) , can claim the CENVAT credit in respect of insurance charges , telephone services, hiring of car, etc using both for trading and services etc. 2. Whether CENVAT credit is available on cellular phone , both for prepaid and post paid? If yes, under which circular