Nayan Medic (Professional + Student) (323 Points)
20 February 2015Sir
If a hotel hire cars from vendors for guest and the vendor charge service tax on the same @ 4.944% , then whether we are eligible to take input credit of the same.
S Jain
(Doing CA)
(442 Points)
Replied 20 February 2015
Yes.. but b not sure.. Plz ask this question in Service Tax category @ expert section .
Suraj Jain
(Member)
(173 Points)
Replied 20 February 2015
Read it some where on forum. chk below
| Originally posted by : Harendra Kumar | ||
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Yes, Service tax charged by your vendor in the partial form because 100% liability to your but they charged only partial a clause is applicable only 40% @ 4.944 of 12.36%. Further you are registered with Service Tax and not charges service tax benefit availed SSI exemption 10 lakh and which tax charged on you same collected by your client i.e. corporate body. Now you and your vendor are engaged same business then your vendor charged the fully tax @ 12.36% and same you availed as Cenvat Credit. Plz read very carefully Service Tax Notification No. 30/2012 w.e.f. 01.07.2012 on cbec.gov.in If other queries will be found then forward the same. |
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CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 20 February 2015
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 20 February 2015
Ankit Kumar
(-)
(46 Points)
Replied 20 February 2015
Yess....U r not eligible to grab the input of Service tax credit unless such motor is not ur capital good.
Please refer, Notification No 3/2011 CE(NT) dated 1.3.2011 (made applicable from 01-04-2011).
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 03 March 2015
Hello,
But in a recent case law Apollo Tyres vs Commissioner of C.Ex. and St., Vadodara-II [2015 (2) TMI 976 – CESTAT AHMEDABAD] it was held that service tax paid on rent-a-cab services used for transporting of officials and guests to and from the factory premises is allowed as CENVAT credit. It was further relied that these services are in relation to business and hence CENVAT is available.
Dharmesh
(C.A.)
(47 Points)
Replied 16 March 2015
Dear Nayan Medic
In my opinion, You can avail the input service tax paid on hiring the Rent a cab services.
Mr.Maheshwari has pointed out exceptions to Rule 2(l) of Cenvat Credit Rules.2004. In my opinion this rule is applicable for excise duty paid on purchases of Capital goods. One can not avail the CENVAT of excise duty paid on purchases of Motor car (Capital goods) if he is not in the business of Hiring of Motor vehicle. However service tax paid on input service is eligible for CENVAT.
I hope the above will clear your doubt.
Regards
Dharmesh
8898507555
Venkatanarayana GM
(Partner associate at Hiregange & Associates)
(1279 Points)
Replied 11 March 2016
Mr. Ganesh,
Extract of input service definition from CCR 2004
n[(l) "input service" means any service,
(i) used by a provider of 1o[output service]1o for providing an output service; or
(ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal]1n,
and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal;
1p[but excludes]1p,
1q[(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for -
(a) construction or execution of works contract of a building or a civil structure or a part thereof; or
Page 4 of 33The Cenvat Credit Rules, 2004
(b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or]1q
1r[(B) 1s[services provided by way of renting of a motor vehicle]1s, in so far as they relate to a motor vehicle which is not a capital goods; or
1t[(BA) service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not a capital goods, except when used by -
(a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person ; or
(b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or]1t
(C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;]1r
This input service definition from 2011 onwards
Since it clearly excludes you cannot avail credit of the same.
Case laws covering period after 2011 favouing to assessee has not yet come.
Warm regards
Venkatanarayana GM
9620116162
venkat @ hiregange.com
CAclubindia
