utilisation of service tax credit
Querist : Anonymous
One concern is providing two different services viz. beauty parlour service and engineering consultancy.
My question is: Can input credit of beauty parlour services be utilised for the payment of engineering consultancy service tax.
Querist : Anonymous
One concern is providing two different services viz. beauty parlour service and engineering consultancy.
My question is: Can input credit of beauty parlour services be utilised for the payment of engineering consultancy service tax.
### ✅ Short Answer:
**Yes**, the input service tax credit can be utilised across different output services **provided both are taxable services** and the credit is **eligible under CENVAT Credit Rules, 2004**.
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### 📘 Explanation:
Under **Rule 3 of the CENVAT Credit Rules, 2004**, a service provider could avail credit of input services used for providing any **output service**, subject to:
* Both services (beauty parlour and engineering consultancy) are **taxable**.
* The **input services** are used in or in relation to the provision of taxable output services.
* You maintain **proper documentation and invoices** to support the credit claim.
There was **no restriction** that input services for a particular type of taxable output service could not be used for another taxable service, **unless** the input is exclusively used for exempted services.
---
### 🚫 When Credit Is Not Allowed:
If one of the services was **exempted or under a composition scheme**, then **Rule 6 of CENVAT Credit Rules** would apply, restricting or proportioning the credit.
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### ✅ Conclusion:
Since both **beauty parlour services** and **engineering consultancy services** were taxable, input service credit from one can be used to pay service tax liability on the other—**subject to compliance** with documentation and input-output linkage.
Would you like a draft format for record-keeping or internal documentation to support this credit use?
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