telephone bill And other service tax bill

[manoj raut]

Dear  Khatri sir

We are manufacturing machinery for pharmaceutical product and take excise registration in april2012, service tax registration will be registration next month.  My question is can we take service tax credit on telephone  bills and other service purchase in RG 23 part II for utilisation of final product?..

Please guide.

Regards

Manoj Raut

AI Summary

Eligibility for CENVAT Credit on Service Bills for Manufacturing: Direct/Indirect Relation to Taxable Goods Matters A participant inquired about the eligibility to claim service tax credit on telephone and other service bills for manufacturing pharmaceutical machinery. An expert advised that CENVAT credit on input services is possible if these services relate directly or indirectly to manufacturing taxable goods, post-registration. Another expert highlighted changes in the Finance Act, 2011, noting that credit on such inputs is not advisable unless they directly contribute to the final product. A third contributor clarified that service tax registration is not necessary for availing CENVAT credit, but it is required for service tax payment.