Hii freinds .......
During the FY 2012-13 our client has used following services.I have a doubt whether service tax on the same is eligible for cenvat credit?
1.FREIGHT & FORWARDING OUTWARDS
2.Certification Charges
3.Consultancy(MARKETING)
4.Internet Charges
5.Postage&telegram(Courier)
6.Telephone&Telex
All the above bills are raised in the name of company
Yes you can take cenvat credit of all the tax paid on inputs which is billed on your company name.
You have not provided all the facts of the case. please specify whether your company is a manufacturing concern or a service provider or both
YOU CAN TAKE CREDIT OF ALL SERVICE TAX PAID ON ANY SERVICES, IF YOU ARE HAVING INVOICE OF THAT........
If the input services are used in providing taxable output services, then yes.
Yes you can avail cenvat cenvat credit on above services. However, outward transportation upto place of removal is only allowed as input service. Hence, service tax on freight paid for transportation beyond place of removal will not be allowed as input credit.
Are you a manufactureere or a service provider?
From 1st April 2011 the input service definition has under gone changes.
any service which has no relationship whatsoever with manufacturing of final product will not be eligible for CENVAT.
If you are service provider than the input service should have nexes to the out put service.
service which has no relationship whatsoever with manufacturing of final product will not be eligible for CENVAT.
If you are service provider then, you can take cenvat credit of all the tax paid on inputs
however, recent development is, the department while scrutinizing the returns filed by assessees has been focusing upon whether the services taken have any nexus with the service provided or not. As a basic principal of value addition and credit of tax paid , if you are the ultimate consumer , you have to bear the service tax.
All of the above answers should be considered as they all are valid
CAclubindia
