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Cenvat credit

prashanth (Article student) (120 Points)

22 June 2012

I just wanna know....

Can a bank branch avail cenvat credit on service tax paid for CCTV SURVELLIANCE SYSTEM servicing and maintanance

**Invoice provided by the service provider also consists of details breakup of the same **

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7 Replies

(Guest)

Yes they can take..

Any tax paid for the running of business can be taken as credit.

prashanth (Article student) (120 Points)
Replied 22 June 2012

But bro they arent using this service(CCTV services) as an input service for providing their services na.... But still can they claim cenvat credit??

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 23 June 2012

If it is an Input service, it can be claimed as credit. No direct connection with manufacturing activity or provision of output service is required.

Check COCA COLA VS UOI.

prashanth (Article student) (120 Points)
Replied 23 June 2012

ohh i dint knew this b4
Thanks thanks a lot prateek bayya :)

Rakshit (practising) (338 Points)
Replied 24 June 2012

no direct relation is required for availing credit on input services, however, credit of pnly those input services can be availed only if they are utilised for providing output service. If there is no coorelation between the input service and output service, cenvat credit cannot be availed on such input service.

sureshkumar mansingbhai barot (Acc.) (21 Points)
Replied 24 June 2012

sales related service can taken input cenvate ?

Rakshit (practising) (338 Points)
Replied 24 June 2012

please be specific what kind of input service are you talking about. If you see a correlation between input service and output service, only then cenvat can be availed.