Service tax credit availment on cctv cameras

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..... Service tax credit availment on cctv cameras
Query (Issue) Started By: - SANDESH SHINDE Dated:- 20-8-2014 Last Reply Date:- 21-8-2014 Service Tax
Got 2 Replies
Service Tax
Dear SIR, Can a manufacturer avail service tax credit on cctv cameras installed in the factory as a input service, pls give any reference regarding this, thanks and regards. Reply By Pradeep Khatri: The Reply: Dear .....

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..... Sandesh, Please check and revert that how the installation of CCTV camera has the nexus with, in or in relation to the manufacturing of finished goods or output service. Further, how such services will be fit in the definition of Input Services. Regards YAGAY and SUN (Management and Indirect Tax Consultants) Reply By Akash Deep: The Reply: Dear Sandesh, For availing CENVAT Credit, three th .....

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..... ings need to be satisfied that service on which credit i sought to be availed must qualify as input services under CCR, 2004. such input services must be used in provision of out put service as defined under CCR, 2004 and there must be a reasonable nexus to prove that input services has actually been used in provision of out put service or in manufacture of excisable goods. if we look at the defin .....

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..... ition of input services as provided under Rule 2(l) of CCR, 2004, it provides that any services used by a manufacturer whether directly of indirectly, in or in relation to the manufacture of final products would qualify as input services. Moreover, inclusive part of the definition widens the scope further by including services used in relation to modernisation of factory or factory premises. term .....

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..... "modernisation" is of wide amplitude and includes not only activities resulting in enhanced production capacity of the factory but also includes other aspect which indirectly resulted in better management, administration of the factory. Installation of security cameras is certainly quality as modernisation of the factory or factory premises. Credit is rightly available to you. .
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