A car dealer raises debti note for incidental charges from its customers and pays service tax on same. Can it avail input credit of service tax charged on service charges charged by the manufacturer.
MURALI SRINIVASAN (INTERNAL AUDITOR) (76 Points)
14 December 2012A car dealer raises debti note for incidental charges from its customers and pays service tax on same. Can it avail input credit of service tax charged on service charges charged by the manufacturer.
Kaushik Vinod
(CA IN PRACTICE)
(1953 Points)
Replied 18 December 2012
Hi Murali,
The Cenvat under your case can be taken only when your your case under specfic part of the Rule 2(l) of CCR 2004 ie "Input service means any service used to provide output service" .
Check the facts and decide about booking the credit.
Thanks