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TMI BlogInput Service credit - RegX X X X Extracts X X X X X X X X Extracts X X X X ..... Our company had purchased land for expansion of existing plant. The land is part of factory premises. The service providers had provided various services i.e. Cleaning, Excavation, leveling, filling to develop the land for new project. The Professional liaisoning services are also received. Kindly guide us whether we are eligible to take Input service credit against the Bills received by us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for said activities/ services? Regards, VINAY - Reply By Pradeep Khatri - The Reply = Yes, you can avail the CENVAT credit as such services are very much included in the definition of Input Services. Please refer the definition of Input Service under Cenvat Credit Rule, 2004 as amended time to time. - Reply By Lohita Tatineni Tatineni - The Reply = 1.As per the Rule2(l) of cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vat credit rule 2004 , Input se rvice is defined as the services used inrelation to setting up, modernisation,renovation ,repairs of a factory,premises of service provider or an office relating to such factory or premises 2.The services are being used for expansion of the existing project ,hence they are input services and credit can be availed. 3.The credit can be availed only after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of service tax see rule4(7) . 4.The credit so availed can be utilised for payment of duties or taxes as per Rule 4 of cenvat credit rules . 5.The service provider must issue an invoice evidencing such payment on basis of which you can claim credit. Regards, Lohita - Reply By Pradeep Khatri - The Reply = You may avail the CENVAT credit immediately without paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of service tax but in this scenario payment of said invoices should be made within 90 days from the date of invoices or bills. Otherwise you would have to pay interest and reverse the CENVAT credit on Input servces. You can again avail the reversed CENVAT credit after making payment of the Invoices. This change was implemented in the Finance Budget'2011. - Reply By vijay kumar - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = It may be observed that the phrase "setting up" has been deleted from the definition of input service w.e.f. 1.4.2011 and presently only modernization, renovation and repairs are included. If the purpose is to set up the land acquired for a new project, Department may certainly raise objection since it does not amount to modernization, renovation or repairs of the existing facility. Hence it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s better to seek clarification from the Department before availing the credit to avoid undue litigation at a later date. - Reply By sv bhasker - The Reply = Sir I agree with Mr Vijay Kumar that 'setting up' has been deleted from the input servicce definition w..f 1.4.2011 and credit needs to taken only in consultation with departmental officers. - Input Service credit - Reg - Query Started ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By: - vinay wakde Dated:- 10-5-2012 Service Tax - Got 5 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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