Service tax credit

This query is : Resolved

k.v.satyanarayana

k.v.satyanarayana (Querist)
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16 March 2014 friends can u pls tell me whether a manufacturing company can take credit for service tax paid on installation charges charged by seller of ups when paid on purchase of UPS(capital) or it will include in the cost of product. the ups was using in office.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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16 March 2014 Service Tax Input Credit can be availed.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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16 March 2014 I understand that CENVAT Credit on UPS cannot be availed. A manufacturer is eligible to claim CENVAT credit on input,capital goods and input services which are used for the manufacture of an excisable goods or the provision of taxable services but in case as it appears that UPS is being used in office thus it would not be availed.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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16 March 2014 Mr CK Bajpai is correct.More over a manufacturer may not be having ST liability of similar kind,in which case only it will be permitted...mjk

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