TMI BlogService tax paid under RCM for supply of manpower for garden maintananceX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We have a garden contractor and he is maintaing our garden on basis of fixed monthly amount. We are paying service tax on that under RCM. Please let us know whether we are eligible to take service credit of the same. If yes, please give board's clarfication on this. Regards Deepak - Reply By Rajagopalan Ranganathan - The Reply = Sir, Garden creates better atmosphere and env ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ironment which increases working efficiency. Therefore it is an eligible input service and service tax paid thereon is eligible for taking credit. There are many decisions of CESTAT for and against availing such credit. However I do not come across any circular issued by CBEC in this regard. According to rule 2 (l) of CENVAT Credit Rules, 2004 (l) input service means any service, - ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) used by a provider of output service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal. However before taking the credit you seek the advice of your Range Officer or inform him that you are taking credit of service tax paid on gar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dening service provided by your contractor. Another interpretation is that you can avail the credit treating it as man power supply service provided by your contractor and the Department cannot have any objection. You need not tell that the man power is for maintenance of the garden. - Reply By Ganeshan Kalyani - The Reply = The department denies the service tax credit on gardening services i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the factory though the nexus can be justified by assesse for rightly eligibility of credit by relating it to manufacturing activity. If the amount is nominal it can be ignored. Further if you are paying service tax under reverse charge then under which accounting head you are paying the tax. If the supervision and control of the labour of the contractor who takes care of garden maintaining servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce is with the assesse then the service can be construed as manpower service and credit can be taken. Also the credit of the paid under reverse charge is allowed on challan based hence the invoice of the maintenence contract may not be asked by the service tax department and therfore they may not come to know for what service the service tax credit is taken. moreover if the service is of gardening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintenence then the provider of the service should have charged the tax on invoice and you would have escaped from payment of service tax under reverse charge. - Reply By Mahir S - The Reply = If the Garden is maintained in the factory under the statutory obligation, under the Factory Act; then credit is available. - Reply By KASTURI SETHI - The Reply = Sh.Ganeshan Kalyani in his reply dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26.11.2015 has removed all the doubts and echoed the views of Sh.Rajagopalan Ranganathan reflected in his reply dated 26.11.2015. Rather, I would like to say Sh.Ganeshan Kalyani has cemented Sh. Ranganathan's views. Fantastic reply indeed. - Reply By YAGAY AND SUN - The Reply = 2012 (10) TMI 32 - CESTAT, BANGALORE M/s. BASF India Ltd. Versus The Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise Mangalore Cenvat credit input services - rule 2(l) - Service tax paid on watering of lawns, bougainvilleas, creepers, shrubberies and shadow trees, keeping them neat by regular planting and replanting and trimming and pruning etc. inside of appellant s factory premises. Credit taken by the appellant of the service tax paid on these services has been denied on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the same is not covered by the definition of input service Held that:- Landscaping of factory or garden certainly would fall within the concept of modernization, renovation, repair, etc. of the office premises - concept of corporate social responsibility is also relevant. It is to discharge a statutory obligation, when the employer spends money to maintain their factory premises in an ec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o-friendly, manner, certainly, the tax paid on such services would form part of the costs of the final products credit is allowed - in favour of the assessee - Reply By Mahir S - The Reply = Sir, Just want to inform that the word statutory obligation cited in the above case law, has also been referred in my earlier reply dated 26.11.2015. Thanks. - Reply By YAGAY AND SUN - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Reply = Yes, Mahir, This judgment substantiate your opinion. Keep it up. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = We may justify the taking of credit on service tax payable on gardening on various grounds including statutory obligations. However in some cases credit taken on gardening service is rejected by the Department. The Board should seek clarification as to its eligibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the same. - Reply By Ganeshan Kalyani - The Reply = Yes a clarification is expected for set off availability as considerable amount is spent on gardening. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = We, professionals may bring this matter to CBE C who in turn will act. - Reply By KASTURI SETHI - The Reply = Sir, In such like cases ultimately common sense prevails. - Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By Ganeshan Kalyani - The Reply = Exactly sir the ability to convince and the conviction in the speech matters a lotin winning over department. - Service tax paid under RCM for supply of manpower for garden maintanance - Query Started By: - deepak kalambate Dated:- 26-11-2015 Service Tax - Got 12 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion 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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