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Availment of cenvat credit

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This query is : Resolved

abhishek (Querist)

13 October 2015 SUPPOSE ABC COMPANY HAS IMPORT BUSINESS WHO ALSO PROVIDE MAINTENANCE OR REPAIR SERVICE TO THEIR CLIENTS ON SUCH IMPORTED PRODUCTS .

NOW MY QUESTION IS WHETHER ABC COMPANY CAN CLAIM CENVAT CREDIT ON SERVICE TAX PAID TO CLEARING AND FOPWARDING AGENT AT THE TIME OF IMPORTING PRODUCTS AGAINST SERVICE TAX ON MAINTENANCE OR REPAIR SERVICE.

CAN COMPANY TAKE CENVAT CREDIT OF SERVICE TAX RELATING TO TELEPHONE BILL OR FOR COURIER SERVICE ?

Ashish Chaudhary

Ashish Chaudhary (Expert)

13 October 2015 Credit could be taken to the extent charges paid to clearing and forwarding agent for importation of spare parts used in the repair of products. Value of these spare parts should be included in the value of services for charging service tax. Credit not admissible for clearing charges paid on items resold as such.
Telephone and courier credit can be taken. But there would be need to reverse the credit under Rule 6 of Cenvat Credit Rules, 2004 attributable to trading activity.

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