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input service tax credit


my qst. is that
a manufacturing company can get input service tax credit or not
and if it can
on which services it can include for getting the service


Yes a manufacturing company can avail the input for input service tax credit for any service relating to manufacturing or tthe service rendered in the premises or related premises in relationship manufacturing accounting auditing marketing etc . Kindly refer to Rule 2L of cenvet rules 2004

Advocate & Consultant

Dear Sir,

Since 10th September 2004, the manufacturers have become eligible to credit of tax paid on ‘input services’.

The term ‘input service’ has been defined in the ‘rules’. Broadly speaking all the services used for
-     manufacture of the goods
-     clearance of the goods
-     the business of manufacture

Following services are included in the definition (i.e. credit can be availed on the following input services also):
i.     Services used in relation to setting up, modernization, renovation or repairs of
           §     factory
           §     Office (related to the factory)
ii.     Tax paid on Advertisement, Sales promotion, Market research,
iii.     Storage upto place of removal,
iv.     Procurement of inputs (taxable under business auxiliary services)
v.     Activities relating to business such as accounting, auditing, financing, recruitment, quality control, coaching & training, computer networking, credit rating, share registry, and
vi.     Security, inward transportation of inputs/ capital goods and outward transportation upto the place of removal.

Sanjay Dwivedi

Credit for the input service tax can be availed by a unit engaged in manufacturing as rightly indicated by Mr. Sanjay.

Yes u can very well get credit on serv tax paid on Input services.Now defn of Input Service is very very vast and almost all serv will be eligible for credit.

Yes u can very well get credit on serv tax paid on Input services.Now defn of Input Service is very very vast and almost all serv will be eligible for credit.refer to Cenvat Rules for definition.

yes u can get

HI - if you look into cenvat credit rules 2004 - it clearly says - a manf can avail service tax credit. Manufacturer is eligible to take Crt on all services used in direct or indirect relation to manf of taxable goods

as per your details regarding service tax credit, can you pl. guide what is the limit time that an assessee can hold the credit and utilize the same after a period of time
Articled Asst.,

Yes. A manuf. can avail service tax as input credit and he can even utilise the credit against the payment of excise duty


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