06 February 2011
Thanks Shailesh But please go thru the definition of Input service vis a vis input "input service" means any service,- (i) used by a provider of taxable service for providing an output service; or [(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and [clearance of final products, upto the place of removal,]]
"input" means- (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service;
you can notice that in relation to "Input credit" it can be used for AN output service
However in case of Input it can be used for providing ANY output services this makes us to understand that the intention of the lawmakers is to utilise credit of any particular input service is in relation to that particular output service only for which it has been consumed.
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