Cenvat credit availability - NGO

[Asked by Guest]

ONE OF MY N.G.O CLIENT IS REGISTERED WITH SERVICE TAX DEPARTMENT.THE N.G.O IS RECEIVING ROYALTY FROM A COMPANY AND CHARGING SERVICE TAX FOR USE OF N.G.O NAME . LET ME KNOW PLEASE WHETHER THE N.G.O. CAN AVAIL INPUT SERVICE TAX BENEFIT PAID BY N.G.O TO ELECTRICITY DEPARTMENTAND TELEPHONE DEPARTMENT FOR ITS H.O AND BRANCHES.

[sudhir V S]

Dear Mr. Gupta, The CENVAT Credit on the service tax paid on input service in Head office and Branches can be availed if there is a centralised registration. Else the HO can resister as Input Service Distributer and can pass the credit to branch having ST Liability by raising an Invoice. Also Note that no Service tax is charged in Electricity Bill. Telephone, internet, security, bank charges, Insurance etc can be availed

AI Summary

Cenvat credit availability hinges on centralised registration or use of an Input Service Distributor to allocate input service credit.
Cenvat credit for a registered NGO can be availed centrally if there is centralised registration; otherwise the head office may register as an Input Service Distributor to distribute input service credit to branches with service tax liability. Telephone, internet, security, bank charges and insurance qualify as input services for credit; electricity bills do not attract service tax and therefore do not give rise to Cenvat credit.