Input service credit.- Reg.

[vinay wakde]

We are Exporting our process generated waste and discounting the export bills in the Bank under EBR (Export Bills Abroad scheme). We have received Advices from bank wherein service tax to the extent of 12.36% is  recovered from us.

Kindly let us know whether we are entitled to take Input service credit on the strenght of copy of Bank advice?

Regards,

VINAY

 

 

[YAGAY and SUN]

Yes, you can avail the CENVAT credit on the basis of 'Original bank advice'  as banks are exempted to issue invoices under Service Tax Laws.

 

If you can't avail the CENVAT credit, even then, you may get the exemption or refund as the case may be.

AI Summary

Input service credit can be claimed based on original bank advice where banks are exempt from issuing invoices. Entitlement to Input service credit arises where service tax recovered by a bank on discounting export bills may be claimed on the basis of the original bank advice because banks are not required to issue invoices under service tax law; if CENVAT credit cannot be availed, the taxpayer may pursue exemption or refund remedies.