Security chgs service tax

This query is : Resolved

k.chinni krishna (Querist)
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17 August 2007 Can Service tax charged in bill by a Security service agency be taken as credit/set-off against excise duty payment?

Raj

Raj (Expert)
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17 August 2007 yes you can .

k.chinni krishna

k.chinni krishna (Querist)
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17 August 2007 It is said that as It's not related to production/ manufacturing so No credit is eligible. is this true? our company is manufacturer of road safety products (crash barriers).

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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18 August 2007 If you are engaging service of security agency for the security of your factory, it is related to production.

The defination of Input service covers services used by the manufacturer whether directly or indirectly in the manufacture.

Further, Rule6(5) of Cenvat Credit Rules specifies Security Agency Service among other service as eligible for 100% credit even if partly used for production of exempted products.

SETOFF CAN BE TAKEN.