cenvat credit

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Sir,

 

Please tell me if have a taxable service namely CARGO HANDLING SERVICE and at the same time we also have a service namely supply of tangible goods for use service. We are sister concerns.

I just want to know whether service tax paid on supply of tangible goods can be claimed as input tax credit  for payment of cargo handling service.

Secondly can service tax charged by bank in the bank statement can be availed as input tax credit under service tax.

Please confirm.

 

Thanks,

Regards

Replies (4)

If the input service namely supply of tangible goods has nexus with the out put service namely cargo handling service, same qualifies for cenvat credit.
 

Cenvat credit rules do not require one to one relationship [ Rule 3(1) read with 3(4) of Cenvat Credit Rules] Entire cenvat credit is common pool which can be utilised for payment for any eligible duty, service tax or amount.. So, Cenvat credit can be taken..

Under cenvat credit scheme, availment of credit and utilisation of credit are different aspects. For availing cenvat credit , the service shall qualify as input service as per the definition.The service shall have nexus with providing of  ouput service or manufacture of excisale goods . Once credit is admitted having fulfilled this condition then for utilisation there is no one to one correlation between the inputservice and ouput service/manufacture of goods.

Originally posted by : CA Unnikrishnan Nair N

Under cenvat credit scheme, availment of credit and utilisation of credit are different aspects. For availing cenvat credit , the service shall qualify as input service as per the definition.The service shall have nexus with providing of  ouput service or manufacture of excisale goods . Once credit is admitted having fulfilled this condition then for utilisation there is no one to one correlation between the inputservice and ouput service/manufacture of goods.

Yes, agree with you sir..


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