Service tax credit on - Capital goods service

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....ervice tax credit on - Capital goods service<br> Query (Issue) Started By: - ayaj mulani Dated:- 1-12-2010 Last Reply Date:- 2-12-2010 Service Tax<br>Got 2 Replies<br>Service Tax<br>We have manufactur....

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....er under SSI. We bought machinery from Excise Manufactuer and taken 50% cenvat on it in this year & will take 50% in next year. The manufactuer charged to us service tax on machine erection. Can we a....

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....vail Cenvat of service tax 100% or 50% in this year & 50% in next year? Please suggest with notification or rule no. Regards. AYAJ Reply By CA Rachit Agarwal: The Reply: We can take credit for 10....

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....0% of duty. Erection of Machiniery come under the service tax rules and comes under the word "Input Services". As per Rule 2(l)The word input service includes "services utilized in relation to sett....

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....ing up, modernization, renovation.......". Hence we are eligible to take credit for 100% of duty in the first year. Erectioning services does not come under the definition of capital goods. Reply By....

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.... dinesh agrawal: The Reply: If you are a SSI unit, you may not be an excisable unit, then where is the question of availment of CENVAT credit?<br> Discussion Forum - Knowledge Sharing ....