Service tax input for car dealers comapny

877 views 7 replies

CA Ankit Bhutoria

372 Points Joined December 2009

We are a Car Dealership Company . We are engaged in selling and providing Service (free and paid) of cars . We even have authorized Service station. some of our cars are run on hire also.

The main issue is we are confused about the Input credit of excise or service tax we can take.

We are paying Service tax under 3 Categories

1. Business Auxiliary -As we provide Business Auxiliary Service to Insurance and Finance Companies

2. Rent Cabs - As some of our cars run on hire

3. Authorized Service Station- As we are Authorized Service provider of the Company.

We Receive many Services such as

Training of staff

Legal Advice

Audit Service

Telephone

Capital Goods for Excise

Security Contract

cleaning Contract

I basically want to know that till where we can claim input and as per which rule.

CA Ankit Bhutoria

Replies (7)

CA Sripal Jain

Associate Finance

709 Points Joined January 2009

Yes there is no restriction on these 16 specified services

	Consulting Engineer [section 65(105)(g)]
	Architect [section 65(105)(p)]
	Interior decorator [section 65(105)(q)]
	Management consultant [section 65(105)(r)]
	Real Estate Agent [section 65(105)(v)]
	Security Agency Services [section 65(105)(w)]
	Scientific or technical consultancy [section 65(105)(za)]
	Banking and Financial Services [section 65(105)(zm)]
	Insurance Auxiliary Services concerning life insurance business [section 65(105)(zy)]
	Erection, commissioning and Installation [section 65(105)(zzd)]
	Maintenance or repair [section 65(105)(zzg)]
	Technical testing and analysis [section 65(105)(zzh)]
	Technical inspection and certification [section 65(105)(zzi)]
	Foreign Exchange Broker [section 65(105)(zzk)]
	Construction Service [section 65(105)(zzq)]
	Intellectual property services [section 65(105)(zzr)]

check this and only on this services there is no dispute and u can claim input credit on this

regards

sripal jain

CA Ankit Bhutoria

372 Points Joined December 2009

brother

thanks for reply but we use these services for both provoding taxable service and sale of cars

CA Ankit Bhutoria

372 Points Joined December 2009

i know i can claim input on these i just wanna knw extent upto which we can take input of these

CA Sripal Jain

Associate Finance

709 Points Joined January 2009

there is nothing mentioned on extent,see you cannot adjust against sale,u cn adjust only against service or on amnufacturing,so dont mix sale and all here,if your providing service say proportionately ,then u must be taking proportionately

CA Ankit Bhutoria

372 Points Joined December 2009

till now they take 20% Of entire Input credit as they say we are both receiver and provider of services i think you twlling as per Cenvar Credit rules

Ajit kumar Dubey

Taxation Manager

637 Points Joined September 2008

All the rules and the list of services as mentioned by Mr. Jain and Mr. Ankit is not applicable since FY 2010-11. As per the revised guidance CENVAT Credit cannot be taken on the services which are either excluded or not mentioned as per the definition of Input Services as provided in Rule 2 of the CCR, 2004. Kindly revise your strategy for the manner of availing Credit, else it leads to violation of act.

CA Sripal Jain

Associate Finance

709 Points Joined January 2009

hi ajit,

in which notification its given tht we cant claim ,we r claiming now also,and kindly see wht have u written,as the list which i have given is included and mentioned ,so please give answer with reference to notification or section or rule no,there is no violation of act,please be careful about wht the law says and interpret accordingly,if the rule is there it still exist,i have not seen any amendments

regards

sripal jain