set ooff of input service tax

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vivek vishal agarwal (Querist)

03 June 2009 if a company is not a sevice provider but is a manufacturer then can it avail the service tax input and set it off against the excise duty payable? moreover can it avail the service tax input of every thing ,i mean can it take the s.tax input on goods which are not used for manufacturing?

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)

03 June 2009 Yes manufacturers are entitled to take cenvat credit on input services. The definition of input services for manufactures is as given below:
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,
(This clause has been amended vide Notification 10/2008 C.E. (N.T.) - dated 01-03-2008)

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;

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