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Service tax on equipment designing and development cost

This query is : Resolved 

16 January 2015 Dear Sir,

My company is a manufacturer of equipment for commercial use.

Company planning to develop a new equipment with the help of an expert company. Expert company will design and develop prototype machine as per our instruction.

Once the machine is finally designed and delivered to us , we will start commercial production and the same will clear against excise duty.

Can we claim input credit on service tax bill raised on design and development cost by the expert company.
with thanks.

21 January 2015 Yes, you can take the cenvat credit on input services on design and development by the expert.



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