utilisation of cenvat credit in respect of hotels

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2010 We are charging service tax from our customers on services provided by us like, taxi hire, laundry (dry cleaning), broadband, etc. On the other hand, we availing cenvat credit of services received by us like Security, Manpower, telephones, etc. We would like to know if we can set-off the cenvat credit against our service tax payable? If yes, How? If No, WHY?

annapurna

annapurna (Expert)
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08 June 2010 You are basically the service provider providing output services like taxi hire, dry cleaning, broad band etc. You can also avail CENVAT credit of services received like security, manpower, telephone, etc because basically the input service is classified into general and specific service. Some of the input services can be common input services which may be directly or indirectly related to provision of output services. Therefore based on the analysis of input definition and CENVAT credit Rules the service tax paid on input services can be availed. The input service tax under the service tax can be availed on the payment basis.