Service tax input

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Vishwas Bidada (Querist)
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30 October 2012 one of my client is in the business of buying and selling of swaraj mazda. On that they are incurring transportation cost. on that they are paying service tax. that is input for them.
Now they have opened a workshop. i.e. for repairs and maintenance of vehicles. on that they are charging service charges on that they are collecting service tax. Now this is the output service for them.
Now my query is whether they that adjust ST input against output.
Please give the elaborate answer.
Thanking you

Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 October 2012 I think input service is not related to the output service. Input service used by a provider of taxable service for providing an output service. you can't claim this input service.

Vishwas Bidada

Vishwas Bidada (Querist)
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30 October 2012 Can u Please give me the provision...

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Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 October 2012 you read the definition of input service under rule 3 of cenvat credit rule 2004.

Vishwas Bidada

Vishwas Bidada (Querist)
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30 October 2012 i cannot find the specific answer... i need answer regarding service tax.... please do the need ful

Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 October 2012
Rule 2(I) of cenvat credit rules 2004
"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 upto the place of removal,

Vishwas Bidada

Vishwas Bidada (Querist)
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30 October 2012 thank you very much