Input credit on bank charges

Yes, U can take cenvet credit of service tax charged by bank on these expenses.

Only condition, this is ur input service.

Yes you can Claim credit of service tax paid. Just ask the Financing Organization to issue you a Certificate showing break up of Processing Fee for Loan & Guarantee and Service Tax thereon. Because in most cases, banks and other financial instititions do not issue any bill or invoice as a proof of Service tax been charged. Ask them to give basic details like service tax registration number of bank and details of payment as banks & financial institutins are exempt from other requirement of serially numbered invoices and challans.

we are in manufacturing / repair overhaul industry and paying sevice tax to bank on bank charges , LC opening , Bank guarantee etc etc. Can we avail credit of service tax charged by bank  on service tax liabilty  arises due to repair & overhaul activity.\

Yes, if the bank charges are in relation to the business of providing taxable output services, you can easily prove that the charges and service tax thereon were in respect of input services. Once you porve that service tax is paid on input services, you can claim input credit on the same. Refer CENVAT Credit Rules, 2004.

yes cenvat credit is available.

IF A PERSON IS WORKING AS BROKER OF STOCK EXCHANGE AND HE HAS AVAILED A BANK GAURANTEE FROM BANK ON WHICH THE BANK HAS CHARGED SERVICE TAX ALONG WITH BG CHARGED . FURTHER THE BROKER HAS SUBMITTED THE BG  WITH EXCHANGE, ON WHICH EXCHANGE HAS ALSO CHARGED PROCESSING CHARGES ALONG WITH SERVICE TAX. PLEASE TELL CAN BROKER CLAIM CENVAT CREDIT OF THE ST PAID ON BOTH BG CHARGED AND BG PROCESSING CHARGES, KEEPING IN THE VIEW THE CHANGES MADE IN RECENT BUDGET IN THE DEFINATION OF INPUT SERCIVES. 

THANKS IN ADVANCE .

URGENT REPLY IS HIGHLY APPRICAITED.

SERVICE TAX ON LOAN PROCESSING CHARGES FOR TERM LOAN AND CASH CREDIT LOAN WHTHER CENVAT CREDIT IS AVAILABLE ?

Dear Sir,/

We are manufacturerers, have received mail from Bank while processing the import & Exports Payments clearly mentioning the Service tax portion on Processing & TT/DD Chrges.  Is the Mail document is suffiecient to take the Input credit . Or we need to follow any particular procedure like Mr. Prabhat Gupta mentions.

Please clarify me