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Cenvat credit availment

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This query is : Resolved

nidhi jain (Querist)

21 December 2013 Can the service tax credit on housekeeping service be availed for balance 25% of the service tax paid to the manpower supplying agency. Is there any requirement of having any connection between the input service and output service. I mean to say that is it necessary that cenvat can be taken only on those services which are directly used for providing output service or we can take credit of any of the service used in general?

CA Vikas Acharya

CA Vikas Acharya (Expert)

21 December 2013 cenvat credit rules (ccr)
yes credit of 25% and also of 75% that paid by the receiver can be taken:
25% on the basis of invoice. rule 4(7)of ccr
75% on the basis of challan. rule 4(7)of ccr

its not necessary that there must be a direct connection but they must be used for providing an output service. rule 2(l)of ccr

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