Hi,
We are a small firm providing electronics related engineering & manufacturing services. As such we are registered under Central Excise, VAT and Service tax. This particular question pertains to service tax and providing services.
We are providing engineering related R&D services to our clients and raising service tax invoice on the services provided. But while providing these services we need to buy certain "input" raw materials/components and use them by either building a prototype (proof of concept) and/or testing them (R&D) to render the service. Buying such "input" components incurs excise duty, import duty and/or VAT. Since these material are brought for the sole purpose of providing services, we would like to know whether the duties & VAT incident on these "input" material can be taken as credit in service tax account? If so please clarify what rule/notification allows this.
CAclubindia
