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TMI BlogCredit availability of the service tax as per the invoiceX X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 106 Credit of Service Tax and Excise duty, in this chapted speccified 16 input services, credit would be disallowed when these services ared used exclusively in providing exempted services, otherwise full credit would be allowed. Query : For the above chapter, mention in 16 services, can we interprate that all the bills are came in to the address of factory premises, including any of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in 16 services are elligible for credit? (i.e. we have insurance policy of plant Rs.1010200, (premium rs.100000 and service tax is 10200), can we take the full credit of Rs.10200?)vijay chitte - Reply By vijay chitte - The Reply = as per my opinion : as per rules "Input Service" used by the manufacturere whether directly or indirectly, in or in relation to the manufacture of final produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and clearance of final products from the place of removel. For the above rules we are doing all activities releting to my product (i.e. sales executive's travelling exp,Telephone bills, computer networking, Freight exp, Travelling etc. all the services are used in relation to my product as per rule.) so we can take all the credit of input services. For this your valuable comments are requeste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. - Reply By Surender Gupta - The Reply = As per rule 2(l) of the Cenvat Credit Rules, 2005 - Input service must be used in or in relation to manufacture of Excisable Goods. Insurance Policy is not in or in relation to manufacture of goods but it is qualifing as input service in terms of inclusive definitions of rule 2(l) and accordingly you may take credit for the same. However, if the relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine is used exclusively to manufacture excisable goods you are entitled to take full credit otherwise you are required to follow rule 6(2) or 6(3) of the Cenvat Credit Rules. Further, If you receive the bills in the name of other premises of the manufacturer, there is a concept of Input Service Distributor, you may follow the procedure accordingly to distribute the credit of input services re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived by other offices. - Credit availability of the service tax as per the invoice - Query Started By: - vijay chitte Dated:- 7-2-2006 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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