credit of Service tax

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Sachin (Querist)
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07 August 2009 Whether service tax paid on service received from bus contractor for traveling of workers from nearest railway station to factory and back is allowable against excise duty. Bus was hired for transportation of workers from rail station to factory and back.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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07 August 2009 The service of the bus contractor does not seem to be falling under any taxable catagory.

However, since you have paid the tax, you are eligible for Cenvat Credit, if workers are engaged in the production of goods liable to excise duty(ie not for exempt goods).

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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07 August 2009 agree

Sachin

Sachin (Querist)
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08 August 2009 ok. Workers are engaged in production of excisable goods only.

Guest

Guest (Expert)

10 August 2009 Transportation of workers from station to factory or vice versa does not qualify to be an input service for or in connection with manufacture of excisable goods. Not eligible for CENVAT credit.

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