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which type of service tax credit in manufacturing unit

amit suthar (accountant) (34 Points)

09 January 2009

dear sir/madam,

which type of service tax credit in manufacturing unit?

please reply.....

regards

Amit

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CA CS Akashdeep Singh (Practicing CA) (1394 Points)
Replied 09 January 2009

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

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 09 January 2009

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.