TaxTMI 
TaxTMI 
Input credit in Restaurant Service
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....nput credit in Restaurant Service<br> Query (Issue) Started By: - deepak gulati Dated:- 12-1-2016 Last Reply Date:- 14-1-2016 Service Tax<br>Got 4 Replies<br>Service Tax<br>Dear Experts, In Restraurant Service we are claiming Abatement of 60% as prescribed, the premises are on Rent and we are paying Service Tax on same. Please clarify that we should claim full Input of Service Tax paid on Rent o....
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....r we can claim 40% of same. Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, you may claim cenvat credit of service tax paid to the extent of 40% amount. If you claim in full, proportionate cenvat is to be reversed as per rule 6 of Cenvat Credit Rules, 2004. Reply By PAWAN KUMAR: The Reply: Dear Sir, Please ignore my previous reply, There is no restriction on taking cenvat of input....
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.... services and capital goods except the inputs of chapter 1 to 22 of first schedule to central excise tariff, 1985. Therefore full cenvat credit of service tax paid on rent can be claimed. Reply By KASTURI SETHI: The Reply: The sale of food in the restaurant would amount to clearance of exempt goods. Therefore, the provisions of Rule 6 of Cenvat Credit Rules will be applicable for reversal of cre....
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....dits.This is in addition to restrictions of inputs classifiable under Chapter 1 to 22 of Central Excise Tariff Act, 1975. Notification No.24/2012-ST dated 06.6.2012 (Explanation-2) refers. Other restrictions:- 1.Service Portion in the execution of a works contract and construction service 2. Renting of Motor Vehicles 3. Service of general insurance business 4.Servicing, repair and maintenance....
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.... of a motor vehicle which is not a capital goods 5. Such services which are used primarily for personal use of any employee Reply By MARIAPPAN GOVINDARAJAN: The Reply: I agree with Shri Kasthuri.<br> Discussion Forum - Knowledge Sharing ....