Input tax credit for service tax charged by bank

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2016 Dear Expert,

My query is whether service tax charged by bank for its services like forex conversion, CC/OD charges, LC charges etc are all eligible for input tax credit or there is some restrictions?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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01 September 2016 You can take the cenvat credit of these input services in regards to manufacturing of final product or providing output services.

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2016 Thank you so much sir. But my colleague is differing for this saying that we have exported and received the forex. Now for conversion, bank has charged ST. This is not related to manufacturing and thus, can not be allowed for cenvat credit. Is he true?

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Expert : Anonymous

Expert : Anonymous (Expert)

04 September 2016 No, it is not true you are entitled to take credit.