Cenvat credit availability - Manufacturer and service provider

[MILIND SARAF]

Whether CENVAT credit of Tour Operator Services, rent a cab services, courier services are allowed or not, to a manufacturer and service provider of Engineering products.

[Surender Gupta]

For the purpose of manufacturing activity, we doubt that cenvat credit is available on rent-a-cab services, courier services etc. however, for the purpose of providing services, you should not face any difficulty in availing cenvat credit on these services.

AI Summary

Cenvat credit on tour operator, rent-a-cab and courier services may be disallowed for manufacturers but allowed for service providers. Whether Cenvat credit may be taken on tour operator, rent-a-cab and courier services by an entity that both manufactures and provides services: the advisory states credit is doubtful when those services are used for manufacturing activity but should be available when used in the course of providing taxable output services.