Department deny for R&D distribute service Tax credit. Challan issued by R&D, as the R&D centre cannot be treated as an office to distribute input service credit.

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..... Department deny for R&D distribute service Tax credit. Challan issued by R&D, as the R&D centre cannot be treated as an office to distribute input service credit.
Query (Issue) Started By: - Rajan .....

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..... Rajan Dated:- 27-6-2014 Last Reply Date:- 3-2-2015 Service Tax
Got 2 Replies
Service Tax
Dept. deny for R&D distribute Service tax credit. Issue is challan issued by R&D, as the R&D cannot b .....

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..... e treated as on office to distribute input service tax credit. Is it sustainable under ST rule, can we challenge this. please provide case laws/inputs Reply By MARIAPPAN GOVINDARAJAN: The Reply: De .....

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..... ar Sir, Research and Development, if it is for the purpose of the improving the quality of goods or upgrading the goods or service, then it is having nexus with the manufacturing of goods or providin .....

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..... g output service. As such it may be treated as an office which may distribute credit. Soime case laws are there in this regard. I shall give it within a considerable time. Reply By Naveed S: The Repl .....

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..... y: Sir, Presently CENVAT Credit benefit under CENVAT Credit Rules, 2004 is not available to Capital Goods used for RandD purposes which do not fall under specified Chapter Heading. Further, in regar .....

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..... d to Inputs/Capital goods used in R and D units located outside the factory of manufacturer, benefit of CENVAT credit is not available, therefore not eligible as input credit also. In view of above, .....

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..... department's contention is true and correct.
Discussion Forum - Knowledge Sharing .....

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