Eligiblity for input credit of service tax paid

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2013 Facts:

- Excise Duty levied on Readymade Garments under section 3(2) w.e.f 1st Mar 2011 , giving 40% abetment initially and subsequently increased to 55% and finally to 70% w.e.f 16th Mar 2012.
- We are a Company engaged in manufacturing, whole selling and retailing of Readymade Garments through our own Exclusive Brand Outlets all across India.
- The goods are cleared from our factory on payment of full Excise Duty and brought to our central warehouse and from central warehouse, the materials are dispatched to various stores as well as sold to dealers.
- The stores has been taken on Rent and therefore are paying Service Tax on Rent besides on Advertisement, Professional Fees etc.
- Input Service defined as Services used for “Transportation and Storage up to the place of removal” besides all other cost used directly or indirectly incurred in relation to Manufacturing or clearance of goods upto the place of removal and several other charges.

Query:

- In the light of the above facts, we would like to know Whether we are eligible for Input Credit of service tax paid on various charges including Rent for Stores.

you can also reply the above to me at caharunansari@gmail.com/md.ansariharun@gmail.com

Arun Kumar Singh

Arun Kumar Singh (Expert)

06 January 2013 Cenvat credit will be available on own retail shop/showroom. I have written an article on this issue click on the below link.
https://www.caclubindia.com/articles/cenvat-credit-on-own-retail-shop-showroom-14775.asp#.UOm3_eQgEbA

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2013 Thanks for reply

Excise Duty is levied on Readymade Garments under section 3(2) w.e.f 1st Mar 2011 and section 4(2) says that the provision of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub section (2) of section 3 and Section 4A itself says Place of manufacture instead of place of removal

on the basis of above ground can we claim input service....

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