Service tax-rent a cab

Manufacturers can not avail the cenvat as this service will not be considered as input service, it will be considered as primaraly used for employees.

Dear Palaniappan ,

If you getting bill on abatement Value you have to desposit 100% service Tax. If it is without abatement Then 60% and 40 % will be aplicable. as per my opinion Yes you are eligible for get the full  input credit. 

According to Section 2(i), Input service excludes “(B) service provided by way of renting of motor vehicle, in so for as they relate to a motor vehicle which is not a capital goods” And according to section2 (a) Capital goods includes, “Motor Vehicle design to carry passenger including their chassis, registered in the name of provider of service, when used for providing output service of- (i) transportation of passenger; or (ii) renting of such motor vehicle; or (iii) imparting motor vehicle skills” It means input credit on taxi hire is allowed only to those which are provider of output service of transportation of passenger or renting of motor vehicle or imparting motor vehicle skills. And here is not important that this input service is directly related to your output service