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 and SUN]

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

Input service credit available for bank monitoring and processing fees as they qualify under CENVAT input service definition.
Input service credit can be availed on Service Tax charged by a bank for monitoring fees and processing fees because those banking charges qualify as Input Service under the definition in Rule 2(l) of the CENVAT Credit Rules, 2004 (as amended), permitting CENVAT credit of the Service Tax paid on such services.