22 September 2010
Input service is defined in CENVAT Credit rules as, " “input service” means any service,-
(i) used by a provider of taxable service for providing an output service; or
(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products from the place of removal,
and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service.... ...or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;
Services in relation to construct new premises is included in the definition. I am of the opinion that input credit on the same can be taken.
23 September 2010
I am agry with the expert. Even to input services which have only remote or insignificant nexus with output services will get covered as long as these are treated to activities of business.
Input service covered " settingup, modernization, renovation or repairs of a factory , premises of provider of output services or an office relating to such factory or premises.
CAclubindia
