Registration for availing input in future

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2010 Ours is new manufacturing company which is in under construction of plant. and we are incurring expenses by way of project reports and study reports. for that we are receiving the bills with service tax portion. now are planning to go for registration for service tax. and we want take the all inputs in our bills and the same we want to set off in our future cenvat account.

so for the above purpose what type of service we have to get registration. please note that we are service receivers and not providers at all.

kindly advise for the above

Shyam Lal Naik

Shyam Lal Naik (Expert)
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16 June 2010 Debatable issues involved.

There is no requirement in law that one must be registered under Service Tax for availing Cenvat Credit on input services. The only requirement is that the services should be used for providing output services and / or in or in relation to manufacture of excisable goods / in relation to business activities.

Since you are not provider of output service and assuming that you are not required to pay tax, for the time being, under the reverse charge basis, registration is not required. You may verify, whether you are required to take registration under GTA.

Further, assuming that, your factory, after completion of construction, would manufacture excisable goods. In this scenerio, you are eligible to take credit of input service, as the definition of input service encompases services relating to setting up a factory.

The following case law may be relied upon.

2009 (14) S.T.R. 692 (Tri.-Ahmd.),
COMMISSIONER OF CENTRAL EXCISE, VADODARA Versus VIDEOCON INDUSTRIES LTD.

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