Singh Singh (Accounts Executive ) (25 Points)
22 March 2016
Ankita CWA Final Student
(Principle Internal Auditor)
(348 Points)
Replied 22 March 2016
NO YOU CAN NOT TAKE CENVET CREDIT OF PROFESSIONAL FEES AS IT IS NOT DIRECTLY RELATED WITH YOUR BUSINESS ACTIVITIES.
ONE CAN TAKE CREDIT ON INPUT SERVICE OR CAPITAL GOODS.
INPUT SERVICE MEANS
l) "input service" means any service,-
|
(i) |
used by a provider of taxable service for providing an output service; or |
|
|
(ii) |
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, |
Singh Singh
(Accounts Executive )
(25 Points)
Replied 22 March 2016
Dear Ma'am,
As i have read this paragraph which is i am sharing, plz let me know whether we can claim management fee ?
https://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17947
By Harsh D Gupta, CA
As per Rule 2C of the valuation rules ibid, Explanation II to Rule 2C has specified that the restaurant service provider shall not be allowed to take CENVAT credit of the duties and cess paid on inputs, however nothing shall preclude them from taking CENVAT credit of input service used in or in relation to provide the restaurant service.Thus, it can be seen that the restaurants can take CENVAT credit of service tax paid on input services. These may include:-
a. Management fees in case of outsource of segment of the restaurant operations.
b. Repairs, maintenance, cleaning services
c. Manpower Recruitment service
d. Legal consultancy service
e. Security service
f. Pest controlling etc.
Ajay Chandramouli
(Article Assistant )
(334 Points)
Replied 23 March 2016
Dear Singh
CENVAT Credit of Input services can be availed unless they are specifically used for providing Exempted services. The Managamenrt fee and CA fee are eligible to avail CENVAT as there is no specific restriction on same
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