Advocate- Tax
7811 Points
Joined December 2008
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.