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TMI BlogInput Service - Cenvat Credit Rules, 2004X X X X Extracts X X X X X X X X Extracts X X X X ..... hether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, What are the included services for the purpose of Cenvat credit? -services used in relation to modernisation, 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 up to the place of removal, - procurement of inputs, -accounting, auditing, financing, recruitment and quality control, -coaching and training, -computer networking, -credit rating, share registry, -security, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee. For update, please visit Rule 2(l) of the CCR, 2004 on www.taxmanagementindia.com What is the meaning of output services? The scope of output services has been defined in Rule 2(p) of CCR, 2004 . It does not include negative services and services on which service tax is payable under reverse charge method. What is meaning of exempted services? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be eligible. Specific Services covered in Input service Services of Commission agent: Services of commission agent are in nature of sales promotion and hence will be eligible for Cenvat Credit. ( Birla Corporation Limited 2012 (7) TMI 820 - CESTAT NEW DELHI ) Services for gardening required as per environmental laws: Service for plantation, lawns etc. as required under permission given by Pollution Control Board is necessary for compliance with statutory provisions and hence will be eligible for Cenvat Credit. ( Hindustan Zinc 2013 (11) TMI 407 - CESTAT NEW DELHI ) What is the wasteful expenditure as per the revised definition of input pervice? As per the revised definition of input service,following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice provider. Cenvat credit where service tax is partially or fully payable by service receiver under reverse charge. The CENVAT credit in respect of input service shall be allowed, on or after the day on which the invoice, bill or challan is received. Credit of service tax payable by the service receiver allowed when the service tax is paid. Rule 4(7) If payment of value of input service and the service tax paid/payable not made within three months from the date of invoice/bill/challan, the manufacturer/service provider shall pay an amount equal to cenvat credit availed on such input service. However, no reversal of creditl is required in case of service tax has been under reverse charge mechanism. Further the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... output service, as the case may be, further assigns such right assigned to him by the Government or any other person, in any financial year, to another person against consideration, such amount of balance CENVAT credit as does not exceed the service tax payable on the consideration charged by him for such further assignment, shall be allowed in the same financial year Explanation I.- The amount mentioned in this rule, unless specified otherwise, shall be paid by the manufacturer of goods or the provider of output service by debiting the CENVAT credit or otherwise on or before the 5th day of the following month except for the month of March, when such payment shall be made on or before the 31st day of the month of March. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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