One of our clients, a multinational manufacturing concern is having a regional office in Kolkata. It's manufacturing plants are located in Western and Northern India. It is paying service tax to the landlord of the regional office in Kolkata.
Please let me know at the earliest if it would be possible for them to claim CENVAT CREDIT on Input Service??? As per the opinion of one of their finance executive, they cannot claim CENVAT CREDIT since they are not using the regional office for manufacturing. It is just an administrative office. In my opinion they can claim CENVAT CREDIT as Rule 2(1) of the CENVAT CREDIT RULES, 2004 "Input Service" means any service-
(ii) used y any manufacturer, whether directly or indirectly, in or in relation to the-
- manufacture of final products
-clearance of final products upto the place of removal
and includes service in relation to-
advertisement or sales promotion, market research, accounting, financing, share registry, legal services, etc."
The above text is an abridged version.
Kindly reply as soon as possible as a pending issue has to be sorted out at the earliest.
Thanks in advance.
CAclubindia
