Cenvat credit on common input services

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..... Cenvat credit on common input services
Query (Issue) Started By: - poonam Dated:- 25-4-2008 Last Reply Date:- 20-7-2009 Service Tax
Got 4 Replies
Service Tax
Respected Sir, We are providing Air Travel Agent, Rent a Cab, & Tour operator Services. We are claiming abatement on Tour operator and Rent a Cab services. We are using common input services for providing all the three output ser .....

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..... vices. Now my question is how much cenvat credit we can avail on common input services used for providing output services? Thanks Reply By V Ramanujam: The Reply: In my view, based on Rule 6(3) of amended CENVAT Credit Rules, you may either pay 8% on the abatement value and avail full CENVAT credit or you can reverse the credit to the extent of input services used towards Tour operator & Rent a .....

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..... cap service as per the formula given and avail credit for the balance. Reply By Madhukar N Hiregange: The Reply: In addition to Mr. ramanujams views I wish to add that 100% credit on the 16/17 specified common services would be available as the restriction under Rule 6 are not applicable. Reply By Shankar Patil: The Reply: No cenvat credit is eligible when any form of abetment is opted for. Reply .....

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..... By rakesh chitkara: The Reply: I would go alongwith the last reply. Notification No. 1/2006, as amended by Notification 38/2007 prescribes different rates of abatement for composite tour operator services, with a proviso that simultaneous cenvat credit on input services and abatement can not be availed. It makes better sense to opt for abatement.
Discussion Forum - Knowledge Sharing .....

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