can postage expenses is taken to Service Tax input credit it is allowable under cenvat credit rules 2004
CA lakshmikanth (Chartered Accountant) (238 Points)
27 May 2011can postage expenses is taken to Service Tax input credit it is allowable under cenvat credit rules 2004
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 28 May 2011
eligible to input credit, provided they are directly related to "eligible input service" required for "taxable output service/ taxable exisable goods",
However any postage for outgoing materials would not qualify, as carrige outward does not qualify for input credit.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 28 May 2011
If it has nexus with providing of taxable service or manufacture of excisable goods, it qualifies for cenvat credit. Department may challenge eiligibilty in the light of amended definition of inputservices. The activity of the queriest is not mentioned clearly.
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