Input service credit.- Reg.

[vinay wakde]

We have received Invoice from Bank with charging Service Tax on Monitoring Fees (for restructuring term Loan) and Processing Fees. Kindly let us know whether we are eligible for taking Input service credit on these bills?

Regards,

VINAY

 

[YAGAY andSUN]

You can avail  the CENVAT credit on such services, as these services have been very much incorporated in the definition of Input Service under Rule 2 (I) of the CENVAT credit Rules, 2004 as amended time to time.

AI Summary

Businesses Can Claim CENVAT Credit on Bank Service Charges for Loan Restructuring Under Rule 2(I) CENVAT Credit Rules 2004. A query was raised regarding the eligibility to claim input service credit on invoices received from a bank, which included service tax charges for monitoring and processing fees related to a restructuring term loan. The response clarified that CENVAT credit can be availed for these services, as they fall under the definition of Input Service according to Rule 2(I) of the CENVAT Credit Rules, 2004, as amended.