TMI BlogService Tax Payable on Sacrifice Amount of Term Loan -regX X X X Extracts X X X X X X X X Extracts X X X X ..... Our company had taken loan from Bank for new project. We have now prepaid the outstanding term loan, payment of sacrifice amount etc. to the Bank. The bank has charged Service tax on other payment i.e. sanction fees of term loan. Kindly let us know whether we are eligible to take CENVAT credit i.e. Input service to the extent of Service Tax paid, as we are manufacturer as well as service provider. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kindly let us know what is the duty paying document for taking credit. Regards, VINAY - Reply By Rajagopalan Ranganathan - The Reply = Sir, If the loan is obtained for establishing your factory or for procuring raw material, capital goods which will further used in manufacturing activity then the service received from bank may be treated as input service. Similarly if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan obtained is used for providing output service then also you can avail the credit. Otherwise you are not eligible. - Reply By Naveed S - The Reply = Yes, credit can be availed for such input credit. However, after the deletion of word 'Setting Up from the definition of input service credit, such credit may be disallowed by the department, and hence advisable not to avail such credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Service Tax Payable on Sacrifice Amount of Term Loan -reg - Query Started By: - vinay wakde Dated:- 11-10-2014 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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