CENVAT CREDIT

The Cenvat credit for services received where service recepient is liable to pay service tax can be availed provided the such service tax has been paid to the credit of goverment based on following:-

(1) Such input services are used for providing output services which are subject to tax under service tax and records are maintained in respect of Input services.

(2) Where input services are not fully utilized for providing output taxable services,the input can be availed where proper records in respect of utilization of such input services in providing output taxable services are maintained.

(3)Where the assessee does not maintain any records,the input can be availed subject to a ceiling of 35% tax payable on output services.