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Q. > Please Help: service tax
whether service tax credit will be available on reparing of ac in factory, pls answer with proper clarification
answered Feb 19, 2012 by Mrattunjay , New Delhi
yes
answered Jul 02, 2012 by Rambabu Senkarasetti , Guntur
answered Jul 02, 2012 by Rambabu Senkarasetti , Guntur
Yes.
CA Sansaar

Comments
Chetan Agrawal
28-Jan-2012 , 12:29:02 pmCenvat credit of service tax paid on repairing of ac in factory would be available. The definition of input service as provided in Section 65(105)(l) of the Cenvat credit rules specificaly provides that all the taxable services which are used by a manufacturer, directly or indirectly, in or in relation to manufacture of the final product would be treated as input service and hence credit of Service tax paid thereon would be available. Since A/c installed in the factory is said to be indirectly used for the production of the goods, therefore credit of service tax paid on repair of AC would be available.