Input credit in Restaurant Service

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..... Dear Experts, In Restraurant Service we are claiming Abatement of 60% as prescribed, the premises are on Rent and we are paying Service Tax on same. Please clarify that we should claim full Input of Service Tax paid on Rent or we can claim 40% of same. - Reply By PAWAN KUMAR - The Reply = Dear Sir, As per my view, you may claim cenvat credit of service tax paid to the extent of 40% amount. .....

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..... If you claim in full, proportionate cenvat is to be reversed as per rule 6 of Cenvat Credit Rules, 2004 . - Reply By PAWAN KUMAR - The Reply = Dear Sir, Please ignore my previous reply, There is no restriction on taking cenvat of input services and capital goods except the inputs of chapter 1 to 22 of first schedule to central excise tariff, 1985 . Therefore full cenvat credit of se .....

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..... rvice tax paid on rent can be claimed. - Reply By KASTURI SETHI - The Reply = The sale of food in the restaurant would amount to clearance of exempt goods. Therefore, the provisions of Rule 6 of Cenvat Credit Rules will be applicable for reversal of credits.This is in addition to restrictions of inputs classifiable under Chapter 1 to 22 of Central Excise Tariff Act, 1975 . Notificatio .....

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..... n No.24/2012-ST dated 06.6.2012 (Explanation-2) refers. Other restrictions:- 1.Service Portion in the execution of a works contract and construction service 2. Renting of Motor Vehicles 3. Service of general insurance business 4.Servicing, repair and maintenance of a motor vehicle which is not a capital goods 5. Such services which are used primarily for personal use of any empl .....

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..... oyee - Reply By MARIAPPAN GOVINDARAJAN - The Reply = I agree with Shri Kasthuri. - Input credit in Restaurant Service - Query Started By: - deepak gulati Dated:- 12-1-2016 Service Tax - Got 4 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - Tax .....

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..... TMI - TMITax .....

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