AUDIT QUARY, Service Tax

[SNEHAL SHAH]

R/sir, We are Manufacturing unit & Credit taken on Manpower consultant Invoice & same utilise it for production ( final product ) despatch . Is it valid or not ? Regards, SNEHAL SHAH

Posts / Replies

[rishi mohan]

With reference to the definition of "input service" under Cenvat Credit rules

"input service" means any service,-

       (i) used by a provider of taxable service for providing an output service; or

       (ii) used by the 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],

      and includes services used in relation to setting up, modernization, 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, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

Hence availing credit on manpower consultant invoice is valid.