Availability of input credit

Gourav (44) (70 Points)

04 February 2016

Respected Members & Students,

If a company having excise liability can it adjust service tax paid on rent for liason office aganist such excise liability.

Please provide any circural or notification.......

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3 Replies

Ajay Chandramouli (Article Assistant ) (334 Points)
Replied 04 February 2016

Input service used in relation to manufacture canbe availed and utilized for payment of Excise duty

In my view liason office is used to procure sales and not connected to manufacturing activity so it may litigated by department

Please post it take te expert column and even let me know the final answer

CMA Poornima Madhava (CMA) (13097 Points)
Replied 04 February 2016

If one sees the definition of input service as per rule 2(l) of CCR, input service means any service used by a manufacturer, whether directly/indirectly, in or in relation to manufacture of final products & clearance of final products up to the place of removal.
Place of removal means a factory, depot, branch, godown, consignee place of the manufacturer if he has registered all these places as place of removal with the CE authorities
So if such office falls within the above definitions, then credit can be availed I think.