The banks (both private and public sector) in the normal course of business buy certain capital equipments like centralized air conditioning plant, vehicles, ATMs etc. I would like to understand whether the banks can take CENVAT credit of excise and customs duties paid on purchase of capital items and set off against the service tax liability.
06 August 2009
Yes the ones which are covered in the defintion of CG under CCR 2004. Vehicles are not available. As longba s they are used partially for provding the taxable services, credit would be available.
CAclubindia
