CENVAT Credit on Computers and Air Conditioners

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..... CENVAT Credit on Computers and Air Conditioners
Query (Issue) Started By: - PANKAJ GROVER Dated:- 26-8-2011 Last Reply Date:- 27-8-2011 Service Tax
Got 3 Replies
Service Tax
Dear All Whether Service Provider can claim CENVAT of Excise Duty paid on Computer, Air Conditioner installed in the building of service provider, if yes then either capital goods or input? Please reply Regards .....

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..... RAPG & Co. Reply By ROHAN THAKKAR: The Reply: Dear Sir, It will be treated as input. Regards, Rohan Thakkar Reply By SACHIN SHAH: The Reply: Sir, Please refer the definition of Capital goods as per section 2 (a) of CCR, 2004 as under: (a) "capital goods" means:-- (A) the following goods, namely:-- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, 1 [headi .....

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..... ng 6805, grinding wheels and the like, and parts thereof falling under heading 6804] of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; and (vii) sto .....

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..... rage tank, used-- (1) in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office; or (2) for providing output service, From the definition it's quite clear that capital goods have to be used for providing output service whether directly or indirectly. When the capital goods are not at all used for providing output service then .....

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..... how can we use the credit of the same? Hope You are clear . Regards, SACHIN SHAH Reply By DEV KUMAR KOTHARI: The Reply: Whether Service Provider can claim CENVAT of Excise Duty paid on Computer, Air Conditioner installed in the building of service provider, if yes then either capital goods or input? Computer and Air Conditioners are capital assets if they are used as such for renderign taxa .....

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..... ble services, then apparently CENVAT credit will be based on capital goods for renderign taxable services basis and not as input for renderign services. Please always give clear facts and applicable law for better discussion.
Discussion Forum - Knowledge Sharing .....

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