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service tax credit

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This query is : Resolved

hemant (Querist)

15 October 2010 i work in a manufacturing company. we take many servies on which we pay service tax. but no credit of service tax is being taken by my company. whether service tax credit can be taken?? no output service is being provided by my company but only manufactured items are being sold. kindly mention the provision also which allows/disallows credit.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

15 October 2010 The service tax input services used in manufacture/ business are eligible to be accumulated and used for paying the central excise duty payable on the excisable goods.
If non excisable goods manufactured then no credit wouldbe eligible as no taxable service also provided.

hemant

hemant (Querist)

15 October 2010 sir, can u give me the reference of relevant provision which allows credit of service tax for adjustment against excise duty liability.

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