Input service used for providing work contract service

Hi Sanket,

Cenvat credit on inputs and input services is governed by their respective definitions under Rule 2(k) and (l) of the Cenvat Credit Rules, 2004 (‘CCR’), respectively. Therefore, one has to refer to such definitions to understand whether a service qualifies for being an ‘input’ or an ‘input service’.

In your case, the Cenvat credit, generally, can be claimed on the sub-contractor’s services. Further, other services that qualify to be an ‘input service’ should be eligible for Cenvat credit. Services such as ‘manpower recruitment’ is specifically covered under the definition of ‘input service’. Therefore, you should be eligible for claim the Cenvat credit on such services.