20 June 2008
The Cenvat Credit Rules define ‘input services’ as services used, directly or indirectly, in relation to the manufacture of excisable goods. The definition includes other services such as those used in relation to setting up, modernisation and renovation of a factory, advertisement, sales promotion and market research. It also includes services relating to business such as accounting, auditing, financing, share registry, computer networking, security, coaching and training of employees. Accordingly, it is seen that almost all services used by a manufacturer of excisable goods would qualify as input services, and the service tax paid would be available for utilisation as Cenvat credit. Therefore, you may avail credit of the tax paid on ancillary services falling in the definition of input services and subject to other conditions
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