service tax paid not available for input credit

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CA Balakrishna Bhat (Querist)

31 January 2009 I want to know about those input services taxes, which are not eligible for input credit under cenvat(full list)

Thank you,
Balakrishna

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

31 January 2009 The test for utilisation of service tax as input under central excise is that the serice should have been obtained for the purpose of manufacturing the product or at the time of manufacturing the product.

The post services we obtain after the despatch from factory will not be considered.

There is no seperate list.
You have to apply the above test and should find out the answer.

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Dayal

Dayal (Expert)

31 January 2009 Dear Balkrishna, there is no negative list for service tax input credit.

The onus of eligibility will depend on the following,

You are a manufacturer and your products suffers excise duty

You are a service provider and your services are notified services and liable to service tax.

If you fulfill any one of the above conditions then you are eligible for the input credit

However if you are into trading business and also a service provider or you are a a manufacturer manufacturing dutiable and exempt goods then you are eligible for proportionate credi in terms of rule 6

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