Serivce tax input credit

This query is : Resolved

bhoop (Querist)
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06 April 2010 We are a trading co. and using car for official use. Car provider charges service tax @4.12% on bill amount. so can we take input of this service tax against our any services.

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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06 April 2010 You are doing trading business and not providing any services. In this regard, you can not take input credit unless you are providng any taxable output services

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 April 2010 AGREE

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bhoop

bhoop (Querist)
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06 April 2010 but we are providing services also like repair & maintenance. In this situation is input allowed.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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06 April 2010 Yes it would be admissible. Please see rule 6 (3) which in my view does nto have restriction for trading. Only restriction is for exempted services or goods.

kartik_somu

kartik_somu (Expert)
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06 April 2010 credit can be availed only when the services have been used for providing output service. Trading is not an output service and as such may not be eligible for credit.