Quantum of input credit on service tax

Can Credit on service tax paid for input services be availed fully i.e. 100% from 1st April 2011? Please clarify....Tel me the percentage or quantum of credit that can be availed for input services like

Telephone, Internet Charges, Courier, Rent, Repairs, Insurance, Travelling, Professional fees, Commission 

Replies (4)

If peson is registered than 100% credit for input service is available.

Credit is available on input services across goods & services since introduction of CENVAT Credit Rules, 2004. But where you are providing taxable as well as exempted services, Rule 6 of the above mentioned Rules would be applicable & credit would be availabe accordingly.

 

But in above case also, full credit of Specified Services would be applicable.

 

"6 (5) Notwithstanding anything contained in sub-rules (1), (2) and (3), credit of the whole of service tax paid on taxable service as specified in sub-clause (g), (p), (q), (r), (v), (w), (za), (zm), (zp), (zy), (zzd), (zzg), (zzh), (zzi), (zzk), (zzq) and (zzr) of clause (105) of section 65 of the Finance Act shall be allowed unless such service is used exclusively in or in relation to the manufacture of exempted goods or providing exempted services."

If any of the above services relate to exempted/non-taxable service or production of non-dutiable goods, only proprotionate credit is available. P. note that Rule 6(5) no longer exists.

Thanks Mr. Nair,

I inadvertently ignored the amendments brought to CENVAT Credit Rules, 2004 through Notification No.3/2011-CE(NT) dated 01.03.2011, wherein the above sub-rule 6(5) has been omitted. Thanks again.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details