TMI BlogInput Service Credit on Govt Organisation InvoiceX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We are a manufacturer ,our employee gone for a training course of a Government organization ( Government of India Ministry of Communications IT Department of Electronics and Information Technologies ) and they give us invoice with charging the service tax . So my question is can we take credit as input service of this service tax as this is a government organization. Regards Sw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apneswar Muduli - Reply By Rajagopalan Ranganathan - The Reply = Sir, Before taking credit you have to establish the nexus between the training under gone by your employees and the final product manufactured by you or the output service provided by you. The Cenvat Credit Rules, 2004 do not prohibit taking of credit based on invoice issued by a government organization. - Reply By Mahir S - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = Sir, You can avail input service credit for training course and conducted by Govt. organization, - Reply By KASTURI SETHI - The Reply = Since the training has been provided by an institute which is department of Govt. of India. This department falls under the definition of 'GOVERNMENT' as per new definition. Most of the services provided by the Govt. are not liable to Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice Tax. I am of the view this institute is not commercial. Sometimes Service Tax is wrongly charged due to lack of knowledge. Pl. ensure that Service Tax has been correctly charged. If wrongly charged by the Service Provider, you cannot take credit. - Reply By ashish chaudhary - The Reply = You can take the credit based on the invoice of service provider. You need not to verify the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cability of tax or otherwise at the service provider end. In my view, even if wrongly charged, you shall be entitled to take the credit. - Reply By KASTURI SETHI - The Reply = Dear Ashish Chaudhary Ji, I always welcome Experts' views. I have receptivity to learn from other Experts irrespective of age experience. Otherwise a person will become stagnant water. I differ with you on the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound that if any assessee whether manufacturer or Service Provider pays Central Excise duty or Service Tax in excess on any ground whatever may be, that is unlawful and thus Cenvat Credit taken on that excess amount of duty or Service Tax is also unlawful. For example ; the rate of Service Tax is 10% adv. and the Service Provider charges 12.%, the recipient of the service will take credit of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T paid @10% and not at the rate of 12%. I Practically also, the department never allows such wrong credit. A manufacturer or Service Provider who pays duty or ST in excess can claim refund and then what will be the fate of the Cenvat Credit passed in excess. It is not possible for the department to keep track on such credit. There are so many examples where the department got the amount of credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t reversed which was taken on the basis of goods which did not conform to the definition of 'Manufacturing Process'. So practically, better option is to take precaution while taking credit and thus avoid unnecessary litigation. What is the practice of the department ? is also crucial. Here it would be pertinent to mention that on the basis of PRACTICE OF NON-LEVIABILITY OF CE DUTY ON A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NY GOODS the department also grants exemption from CE duty under Section 11 C of the Central Excise Act. So I mean to say what is practically possible or convenient for the assessee is also to be taken care of. Your views are always welcom e. - Input Service Credit on Govt Organisation Invoice - Query Started By: - Swapneswar muduli Dated:- 18-10-2015 Service Tax - Got 5 Replies - Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice 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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