Input credit in Restaurant Service

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..... Input credit in Restaurant Service
Query (Issue) Started By: - deepak gulati Dated:- 12-1-2016 Last Reply Date:- 14-1-2016 Service Tax
Got 4 Replies
Service Tax
Dear Experts, In Restraurant Service we are claiming Abatement of 60% as prescribed, the premises are on Rent and we are paying Service Tax on same. Please clarify that we should claim full Input of Service Tax paid on Rent .....

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..... or we can claim 40% of same. Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, you may claim cenvat credit of service tax paid to the extent of 40% amount. If you claim in full, proportionate cenvat is to be reversed as per rule 6 of Cenvat Credit Rules, 2004. Reply By PAWAN KUMAR: The Reply: Dear Sir, Please ignore my previous reply, There is no restriction on taking cenvat of inpu .....

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..... t services and capital goods except the inputs of chapter 1 to 22 of first schedule to central excise tariff, 1985. Therefore full cenvat credit of service tax paid on rent can be claimed. Reply By KASTURI SETHI: The Reply: The sale of food in the restaurant would amount to clearance of exempt goods. Therefore, the provisions of Rule 6 of Cenvat Credit Rules will be applicable for reversal of cr .....

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..... edits.This is in addition to restrictions of inputs classifiable under Chapter 1 to 22 of Central Excise Tariff Act, 1975. Notification No.24/2012-ST dated 06.6.2012 (Explanation-2) refers. Other restrictions:- 1.Service Portion in the execution of a works contract and construction service 2. Renting of Motor Vehicles 3. Service of general insurance business 4.Servicing, repair and maintenanc .....

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..... e of a motor vehicle which is not a capital goods 5. Such services which are used primarily for personal use of any employee Reply By MARIAPPAN GOVINDARAJAN: The Reply: I agree with Shri Kasthuri.
Discussion Forum - Knowledge Sharing .....

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