Credit of service tax

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Deendayal (Querist)
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05 April 2009 Friends,

I want to know whether one can utilise credit of service tax paid on input service against other output service.i.e. whether nexus is required between input and output.

Thanks

Deepak Agrawal

Deepak Agrawal (Expert)
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05 April 2009 Not required....

Pravin Nemad-CWA

Pravin Nemad-CWA (Expert)
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07 April 2009 As per Defination, Cenvat i.e eligable duty paid on the input and Capital goods are eligable for credit provided the following condition are satisfied
1. Input are used to provide the output serivecs.
2. Capital Goods enumerated in rule 2 a which are used for providing output services .
So as per defination Service tax credit is eligable only if said services are "used by a provider of taxable services for providing an output services.
You need to establish realtion between input services & output services before utilising the same, because if it is not utilise in relation to output services then it will be disallowed by excise department.
nemadandassociates@rediffmail.com

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