TaxTMI 
TaxTMI 
Input Service - Cenvat Credit Rules, 2004
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....s upto the place of removal, What are the included services for the purpose of Cenvat credit? -services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, - advertisement or sales promotion, -market research, -storage up to the place of removal, - procurement of inputs, -accounting, auditing, financing, recruitment and quality control, -coaching and training, -computer networking, -credit rating, share registry, -security, -business exhibition, -legal services, -inward transportation of inputs or capital goods and -outward transportation up to the place of removal; For update, please visit Rule 2(l) of the CCR, 2004 ....
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....l) of the CCR, 2004 on www.taxmanagementindia.com What is the meaning of output services? The scope of output services has been defined in Rule 2(p) of CCR, 2004. It does not include negative services and services on which service tax is payable under reverse charge method. What is meaning of exempted services? The meaning of exempted services has been defined in Rule 2(e) of CCR, 2004 Important points emerged out from the definition of Input Service ​The definition of Input service is broadly in three parts. First is main part, second is inclusive part and third part covers exclusions. First part of the definition covers input services used for providing output service or used by manufacturer, directly or indirectly, in relatio....
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....ligible for Cenvat Credit. (Hindustan Zinc 2013 (11) TMI 407 - CESTAT NEW DELHI) What is the wasteful expenditure as per the revised definition of input pervice? As per the revised definition of input service,following is the wasteful expenditure and do not deserve any cenvat credit(department's view). * Factory and office building * Motor vehicle is a luxury even if used to transport employees or for business purposes. * All employee benefits like transport,canteen facility,health care,insurance,welfare expenditure is a pure waste. Eligibility of cenvat credit on services provided by commission agent Following explanation has been added to rule 2(l) of cenvat credit rules w.e.f. 3.2.2016 Explanation -for the purpose of this clau....
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....redit availed on such input service. However, no reversal of creditl is required in case of service tax has been under reverse charge mechanism. Further the credit has been reversed as above, assessee can take the re-credit of the same after making payment to the service provider . If any payment or part thereof, made towards an input service is refunded or a credit note is received by the manufacturer or the service provider who has taken credit on such input service, he shall pay an amount equal to the CENVAT credit availed in respect of the amount so refunded or credited: CENVAT credit in respect of an invoice, bill or, as the case may be, challan referred to in rule 9, issued before the 1st day of April, 2011 shall be allowed, on or....