Service tax Input

[ajith kumar]

Is the assessee who provides various services under different category can take Input Credit on all services he avails for exam;e auditing, professional charges, recruitment? In short can the service tax Input can be calimed on all services or is there any exclusions.

[Brijesh Verma]

Dear Sir,

Input Service Tax credit can be availed on all input services without any bar if there is no such output service which is exempted from tax payment. In that case Rule 6(3) of Cenvat Credit Rules 2004 would apply and the three options would come into play!!!

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

As per the definition of 'input service' under Rule 2(l) of CENVAT Credit Rules, 2004 you can avail credit on any service utilised for providing an output service; you can avail credit on such other services in relation to setting up, modernisation, renovation or repairs of a factory, premises of output service, activities relating to business such as accounting, auditing, financing, recruitment and quanlity control, coaching and training, computer networking, credit rating, share registry and security.  The list of activities shown as relating to business in the definition is not an exhaustive one.  If you can able to prove if any service is relating to activities relating to business then credit can be availed on such service.

Regards,

M. GOVINDARAJAN

09486103193

 

[Snehal Kulkarni]

If the nexus between the Input Service and the manufacturing activity can be proven, then you can avail the Cenvat Credit of Service Tax paid on all the Notified Serives.

AI Summary

Input service tax credit entitlement depends on use for taxable output services; exemptions trigger apportionment rules. Credit for service tax is available where a service qualifies as an input service used in providing a taxable output service or for business activities (such as accounting, auditing, recruitment, financing, training and computer networking); the illustrative list is not exhaustive. If output services are exempt, Rule 6(3) of the Cenvat Credit Rules mandates apportionment and application of specific options. Claimants must prove the nexus between the input service and the taxable output service and follow notifications identifying eligible services.