Author : Anonymous
( Author )
16 August 2012
As per rule 2(l)(B)of CENVAT Credit Rules 2004 input services excludes "services provided by way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods" please help us to understand the clause.
whether it means input CENVAT is not available from hiring vehicle
input CENVAT is not available when motor vehicle is not capital good
further as rule specifically says that
Rent a Cab as Input Service in available if it pertains to capital good
in my opinion here it is not talking for cases where cab operator is SR as no person cannot provide service to himself.
by reading the rule, it seems that credit is available if vehicle satisfy the capital good condition for service provider also.