hello
my qst. is that
a manufacturing company can get input service tax credit or not
and if it can
on which services it can include for getting the service
83 Replies
Rajeshmittal
(71 Points)
Replied 10 May 2007
Yes a manufacturing company can avail the input for input service tax credit for any service relating to manufacturing or tthe service rendered in the premises or related premises in relationship manufacturing accounting auditing marketing etc . Kindly refer to Rule 2L of cenvet rules 2004
Sanjay Dwivedi
(Advocate & Consultant)
(143 Points)
Replied 10 May 2007
Dear Sir,
Since 10th September 2004, the manufacturers have become eligible to credit of tax paid on ‘input services’.
The term ‘input service’ has been defined in the ‘rules’. Broadly speaking all the services used for
- manufacture of the goods
- clearance of the goods
- the business of manufacture
Following services are included in the definition (i.e. credit can be availed on the following input services also):
i. Services used in relation to setting up, modernization, renovation or repairs of
§ factory
§ Office (related to the factory)
ii. Tax paid on Advertisement, Sales promotion, Market research,
iii. Storage upto place of removal,
iv. Procurement of inputs (taxable under business auxiliary services)
v. Activities relating to business such as accounting, auditing, financing, recruitment, quality control, coaching & training, computer networking, credit rating, share registry, and
vi. Security, inward transportation of inputs/ capital goods and outward transportation upto the place of removal.
Thanks,
Sanjay Dwivedi
Since 10th September 2004, the manufacturers have become eligible to credit of tax paid on ‘input services’.
The term ‘input service’ has been defined in the ‘rules’. Broadly speaking all the services used for
- manufacture of the goods
- clearance of the goods
- the business of manufacture
Following services are included in the definition (i.e. credit can be availed on the following input services also):
i. Services used in relation to setting up, modernization, renovation or repairs of
§ factory
§ Office (related to the factory)
ii. Tax paid on Advertisement, Sales promotion, Market research,
iii. Storage upto place of removal,
iv. Procurement of inputs (taxable under business auxiliary services)
v. Activities relating to business such as accounting, auditing, financing, recruitment, quality control, coaching & training, computer networking, credit rating, share registry, and
vi. Security, inward transportation of inputs/ capital goods and outward transportation upto the place of removal.
Thanks,
Sanjay Dwivedi
Vk Duggal
(320 Points)
Replied 10 May 2007
Credit for the input service tax can be availed by a unit engaged in manufacturing as rightly indicated by Mr. Sanjay.
Ankit Bhatia
(163 Points)
Replied 10 May 2007
Yes u can very well get credit on serv tax paid on Input services.Now defn of Input Service is very very vast and almost all serv will be eligible for credit.
Ankit Bhatia
(163 Points)
Replied 10 May 2007
Yes u can very well get credit on serv tax paid on Input services.Now defn of Input Service is very very vast and almost all serv will be eligible for credit.refer to Cenvat Rules for definition.
V.A ARAVIND KUMAR
(TAX ANALYST)
(19 Points)
Replied 12 May 2007
HI - if you look into cenvat credit rules 2004 - it clearly says - a manf can avail service tax credit. Manufacturer is eligible to take Crt on all services used in direct or indirect relation to manf of taxable goods
PRASAD
(Deputy Manager)
(59 Points)
Replied 28 June 2007
as per your details regarding service tax credit, can you pl. guide what is the limit time that an assessee can hold the credit and utilize the same after a period of time
Dinessh Kumar
(Articled Asst.,)
(193 Points)
Replied 24 September 2007
Yes. A manuf. can avail service tax as input credit and he can even utilise the credit against the payment of excise duty
Dinessh Kumar
(Articled Asst.,)
(193 Points)
Replied 24 September 2007
Hi Prasad,
There is no time limit for utilising the credit as in the case of TN VAT
There is no time limit for utilising the credit as in the case of TN VAT
CA AYYAPPA
(Chartered Accountant)
(272 Points)
Replied 14 November 2007
A company engaged in manufacturing/producing/providing output services, can eligble for cenvat credit
provided the final product/output service is not exempt from tax or charges at nil rate of duty.
credit can be taken at the time of receipt of material and in case of service tax credit allowed only after the payment of service (including service tax) to the provider.
cenvat credit rules has not provided anything about time limit. but eligible for credit at the time of receipt/payment of input service
rutambh
(.....)
(217 Points)
Replied 15 November 2007
Sir, Still it is required to clarify that if mfg.er (A)is doing trading activity also , in this case mfg.er can availe ser tax paid -GTA for incoming finished goods from other mfg.er(B)?
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