Whether a Hospital ( services of which are exempted from service tax) can avail the Cenvat credit on the Capital goods purchased by it under the Cenvat Credit Rules 2004 ?
CA.AZAD JAIN (CA) (201 Points)
30 May 2015Whether a Hospital ( services of which are exempted from service tax) can avail the Cenvat credit on the Capital goods purchased by it under the Cenvat Credit Rules 2004 ?
M.R.Marimuthu
(Tax Consultant)
(64 Points)
Replied 30 May 2015
They can not avail the cenvat credit on capital goods purchased which is used for exempted service
Mir Irshad Ali
(Partner)
(192 Points)
Replied 01 June 2015
As per the provisions of Cenvat Credit Rules, 2004, Cenvat credit on Capital goods is not admissible of the same are used exclusively in in providing exempted services
Rule 6(4) of Cenvat Credit Rules, 2004 -
No CENVAT credit shall be allowed on capital goods which are used exclusively in the manufacture of exempted goods or in providing exempted services, other than the final products which are exempt from the whole of the duty of excise leviable thereon under any notification where exemption is granted based upon the value or quantity of clearances made in a financial year.
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