TaxTMI 
TaxTMI 
Cenvat Credit in respect of Input services
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....envat Credit in respect of Input services<br> Query (Issue) Started By: - AJAY KUMAR Dated:- 17-6-2006 Last Reply Date:- 28-6-2006 Service Tax<br>Got 3 Replies<br>Service Tax<br>A person who is registered with service tax and rendering taxable services and Trading of goods ( liable to VAT / sales Tax ) , can claim the CENVAT credit in respect of insurance charges , telephone services, hiring of ca....
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....r, etc using both for trading and services etc. 2. Whether CENVAT credit is available on cellular phone , both for prepaid and post paid? If yes, under which circular Reply By Surender Gupta: The Reply: All the services mentioned in the query are eligible for Cenvat Credit for availing Cenvat Credit. For availing Cenvat Credit on Mobile Phone, provisions of Cenvat Credit Rules, 2004 are sufficie....
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....nt. Reply By Madhukar N Hiregange: The Reply: Since this assessee is also provding servcies which are not taxable ( trading) the restriction in Rule 6 of 20% of output tax would in my opinion attract. On cell phones used for office purposes the credit is available under the defintion of input servcies itself. No circular exists. Reply By Sunil Chowdhary: The Reply: There should be a direct rela....
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....tion between the input service and the output service or goods on which service tax / CENVAT is paid. If you have a Cyber Cafe and use a dial up connection, the ISP Charge and Telephone Line charge is an input and sevice Tax on these inputs can be set off. You cannot set office office telephone bills service tax on your output service as it has no relation. However, if you have to deliver an outpu....
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....t service through fax or internet, whatever service tax you prove is for delivering this output service should be rightfully allowed to you. However, even in the department no 2 officers will be consistent with each other. By law they have to be most favourable to assessees but in practice they are revenue centric and will scream substance over form or form over substance, whichever way the revenu....
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....e is higher.<br> Discussion Forum - Knowledge Sharing ....