INPUT SERVICE – NEW DEFINITION
The definition of ‘input service’ under Rule 2(l) of CENVAT Credit Rules, 2004
has been substituted by the new definition vide Notification No.3/2011-CE (NT),
dated 01.03.2011 which came into effect from 01.04.2011. According to the new
definition-
‘Input service’ means any service-
• Used by a provider of taxable service for providing an output service; or
• Used by a manufacturer, whether directly or indirectly, in or in relation to
the manufacture of final products and clearance of final products up to the
place of removal,
and includes services used in relation to modernization, renovation or repairs of a
factory, premises of provider of output service or an office relating to such factory
or premises, advertisement or sales promotion, market research, storage up to the
place of removal, procurement of inputs, accounting, auditing, financing,
recruitment and quality control, coaching and training, computer networking,
credit rating, share registry, security, business exhibition, legal services, inward
transportation of inputs or capital goods and outward transportation up to the place
of removal;
But excludes services,-
(A) Specified in sub clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of
clause (105) of Section 65 of the Finance Act (hereinafter referred as special
services), in so far as they are used for-
(a) Construction of a building of a civil structure or a port thereof; or
(b) laying of foundation or making of structures for support of capital goods,
except for the provision of one or more of the specified services; or
(B) specified in sub clauses (d), (o), (zo) and (zzzj) of clause (105) of Section 65
of the Finance Act , in so far as they relate to a motor vehicle except when used for
the provision of taxable services for which the credit on motor vehicle is available
as capital goods; or
(C) such as those provided in relation to outdoor catering, beauty treatment,
health services, cosmetic and plastic surgery, membership of a club, health and
fitness centre, life insurance, health insurance and travel benefits extended to
INPUT SERVICE – NEW DEFINITION
employees on vacation and such as leave or home travel concession, when such
services are used primarily for personal use or consumption of any employee.
If Found Useful do Hit +1 sign below
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