which type of service tax credit in manufacturing unit

dear sir/madam,

which type of service tax credit in manufacturing unit?

please reply.....

regards

 

Amit

Replies (2)
Originally posted by :amit
" dear sir/madam,
which type of service tax credit in manufacturing unit?
please reply.....
regards
 
Amit
"


 

Yes you can take Cenvat cedit of service tax paid on input services for payment of excise duty, as per cenvat credit rules

The definition of input services is very wide- anything used directly or indirectly in or in relation to the process of manufacture. Further the definition is inclusive- and include service srelated to audit, marketing, advertising, sales promotion, storage, procurement, security, training, computers networking, credit rating, share registry, office, transportation and almost anything related to manufacturing.

Thus a manufacturing unit should examine every bill on which service tax is paid and examine whether the service falls in the definition of input service.

From my personal knowledge, i know almost all manufacturing unit is loosing crores of rupees of service tax credit on input services, merely because of lack of knowledge.

 

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