TaxTMI 
TaxTMI 
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.
Service tax Input
25 Feb 2011 
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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. (AI Summary)
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. (AI Summary)