Availment of Cenvat credit

[Guest]

WE ARE NGO AND RECEIVEING ROYALTY FOR USING OUR LOGO BY OTHERS. WE ARE ALSO TRADING IN SOME ITEMS AND REGISTERD WITH VAT DEPARTMENT. WE ARE PAYING SERVICE TAX ON ROYALTY RECEIVED BY US. CAN WE AVAIL CENVET CREDIT ON SERVICE TAX PAID BY US ON TELEPHONE AND ELECTRICITY BILLS. HOWEVER NO EXPENSES IS DIRECTLY RELATED TO RECEIPT OF ROYALTY.

[Surender Gupta]

Yes, you can avail cenvat credit on input services subject to be provisions of rule 6 of CC Rules 2004

AI Summary

NGO Can Avail Cenvat Credit on Service Tax for Utilities if Compliant with Rule 6 of Cenvat Credit Rules 2004. An NGO inquired about availing Cenvat credit on service tax paid for telephone and electricity bills, despite no direct expenses related to royalty receipts from logo usage. The response indicated that they could avail Cenvat credit on input services, provided they comply with the provisions of Rule 6 of the Cenvat Credit Rules 2004.