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TMI BlogCenvat creditX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, One of my client has imported gym equipments for setting up a gym and running a gym. Whether he will be eligilbe for CENVAT Credit of CVD paid as per Section 3(1) of the Custom Tariff Act on equipments imported and used for provided a taxable output service. - Reply By Himansu Sha - The Reply = Please verify rule 2(a) of CCR 2004 . If it is classified under the specified Tariff , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he can take the credit. - Reply By KASTURI SETHI - The Reply = I concur with the views of Sh.Himansu Sha Ji. - Reply By Himansu Sha - The Reply = Thank you sir - Reply By MARIAPPAN GOVINDARAJAN - The Reply = Whether your turnover exceeds the threshold limit of ₹ 10 lakhs? - Reply By Anish Goyal - The Reply = Yes, turnover above ₹ 10 Lakhs. Gym Equipments falls under Ch. 95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CETA . Yesterday, I studied a lot about this issue. I came to the following conclusion: In the definition, the capital goods are specifically excluded. If certain goods which does not fall under the definition of capital goods but used in provision of services it can be classified as inputs and the credit can be availed. The definition reads Capital goods , so only those goods de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined as capital goods under CENVAT credit rules will be excluded from the definition of inputs. The definition of capital goods is restrictive whereas the definition of inputs is inclusive. Therefore, for other capital goods cenvat credit can be taken. I request all the experts to kindly go through the definition of 'inputs' by keeping in mind the above logic and post your opinion. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By Ramaswamy S - The Reply = As per definition of inputs all goods used for providing any output service is an input but excludes capital goods Further, without these equipments the gym cannot run and therefore am of the view it can also be called as an input and credit can be availed.In that case, it should be ensured that it is not capitalised in the books of accounts. Under the GS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T law, capital goods are defined as those goods that are capitalised in the books of accounts. Please take a call holistically. Regards S.Ramaswamy - Reply By KASTURI SETHI - The Reply = Nicely explained by Sh.S.Ramaswamy, Sir. - Reply By Himansu Sha - The Reply = Whether the cost of the Gym materials is included in the taxable value - Reply By YAGAY AND SUN - The Reply = In our view CENV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT credit is available on the capital goods which are being used by the service provider for providing of the taxable services. However BCD will be a cost to the gym owner/service provider. - Cenvat credit - Query Started By: - Anish Goyal Dated:- 23-3-2017 Service Tax - Got 9 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Managemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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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