SERVICE TAX

This query is : Resolved

Dhruvesh Shah (Querist)
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21 November 2008 The company is manufacturer and engaged in project industries(As companies HO, Factory and sites are situated at different states. Company is service provider under the category of Errection, commissioning and this service they provide from their sites. Manufactured goods from factory are used at sites and the final product manufactured at site is immovable.) company is availing service tax set off on all services received at HO, all the sites and factory, for payment of excise duty on goods removed from factory. Is company eligible for such service tax set off availment and utilization. (is set off of services received at site can be utilized for payment of excise duty on goods removed from factory, as there is no relation between input service and manufactured goods) Can company use Service Distributor concept and transfer the Service tax set off to the factory, and utilize that service tax set off for payment of excise duty.

Arbind Aggarwal

Arbind Aggarwal (Expert)
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22 November 2008 Yes the service tax credit availed by HO for all the cites, can be dic=stributed to any manufacturing factory or any cite regietered for providing output services through Input service Distributor scheme.