Service tax input cenvat credit on cha service invoice

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2013 Dear Sir

Please let me know Service Tax Query my company does Trading and repair & servicing works and we are commission agent, we are service proider so we make service tax payment monthly to govt. i want to know that company made import material from germany for trading and got it cleared through CHA and paid Custom Duty and CHA provide Service Tax invoice so can we get service tax input credit in such case.
Please help me out from this confusion

Regards
Vishal patil

Aditya Umarji

Aditya Umarji (Expert)
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19 October 2013 Dear Mr. Patil,

“input service” means any service,
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(i)used by a provider of taxable service for providing an output service; or
(ii)used by a 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,

Also in Circular No.943/04/2011-CX dated 29.04.2011, at point (6) it has been clarified that cenvat on input services used exclusively for trading cannot is not admissible.

CHA Services are for clearing goods which are traded. Hence the Cenvat would be inadmissible.

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2013 Dear Mr. Aditya Umarji

That means whatever amount we have paid at the time of clearing goods that is cost of purchase and such CHA service Invoice benefit we can not take as Service input

Regards
Vishal

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