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

Cenvat credit available on input services subject to compliance with rule 6 of CC Rules 2004. An NGO paying service tax on royalty and on overheads may avail Cenvat credit on input services such as telephone and electricity, provided the availment conforms to the conditions and limitations set out in rule 6 of CC Rules 2004.