service tax query

[Kirti Tulsyan]

Dear sir,

Iam working in a partnership company, company is providing bus facility to the employees. The bill is received from the public sector (BMTC) and they are charges a service tax which is appx. 3.09% on the basic value. Our earlier manager has informed us to not to take the input credit of the service tax. 

My request is kindly provide us the details where we are not eligible to take the benefit of service tax credit in this issue.

Do the needful.

Regards

A Sujatha 

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Best Regards, 
Kirti Tulsyan
B.Com.,ACA,CS


P.D.Rungta & Co. 
Chartered Accountants 

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[CA Akash Lodha]

Dear Kirti,

As you are availing the abatement scheme & charging service tax @ 3.09% instead of 12.36% so you are not elgibile for Cenvat Credit

but you can take Cenvat Credit on Excise duty  paid on Capital Good

thanks & regards,

CA Akash Lodha

Pune

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Thanks & Regards,
CA Akash S Lodha

Dhule
+91-967-375-9137

[sumit agarwal]

Ms. A. Sujatha,

 

The input credit of service tax by the way of the services provided for renting of a motor vehicle has got two different decisions/opinions .

 

1. As per Rule 2(l) of the Cenvat Credit Rules, 2004, the above services are specifically excluded from the definitions of input services, so you are not eligible to take the input service tax credit on such services provided by way of renting of motor vehicle.

 

 

 

2. There are number of judicial decisions were input service tax credits has been allowed as an eligible input services on renting of motor vehicle. 

 a. CCE Vs. Hyderabad Industries Ltd.

 b. Tata Auto Comp. Systems Ltd. Vs. CCE. 

 

Therefore, in view of the above, your earlier manager was correct from service tax law point. But, if anyone is taking the credit on such services he can do so on the basis of the above tribunal decisions but may face the department contentions of non-availability of such credit but can be fight against in the court of law.

 

 

In case you need any further assistance please let me know.

 

Thanks & Regards
CA Sumit Kr Agarwal

M/S. AGARWAL S K & CO.

Chartered Accountants

ASK ME IN SERVICE TAX

9903979735. 

[Ankit Agrawal]

Dear A Sujatha Ji,

In my view you were (the partnership firm) not eligible for input credit in your this issue. 

 "input service" means any service, —

(i) used by a provider of taxable service for providing an output service; or

(ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,

and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal;

Thanking You

Regards,

CA Ankit Kumar Agrawal

M : +91 - 81000 11810

On Fri, Jan 24, 2014 at 11:08 AM, Kirti Tulsyan <caktu...@gmail.com> wrote:

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Thanking You

Regards, 

CA Ankit Kumar Agrawal

Mobile - +91 - 81000 11810