Input Service tax credit

Hi,

If the service is the taxable service and small scale service providers exemption is not availed,  then in my opinion the cenvat credit can be taken.

Dear Inderjeet Sir,

Agree with Pranjal sir.

Credit of service tax paid on Input services is allowed on one condition that the service is used directly or indirectly  for providing "output service(taxable) or "finished goods(dutiable)" (There are some exceptions to this in case of services of generic nature like architectural services, etc as defined in Rules)

Hence if ur finished product is not dutiable then  Credit will not be allowed. Further in case of both taxable as well as exempt goods/services - Notional dissallowance shall be required if separate accounts are not kept.

So just check the above condition as well.........