S.No.

Category of Service & sub clause under Section 65 (105)

Eligibility and ground for eligibility For Manufacturers For service Providers

Remarks

Advertising Agency (e)

YES. Relating to "advertisement and sales promoition". Still it can be argued that giving LTC is an employee perk, in the YES. Except where the services are availed for any tour, which is primarily for the interest of employee welfare and personal use or consumption of an employee. Example. Tickets booked for Leave hence it is primarily for the benefit Travel Concession to employees. of the manufactuer / service provider. If the output services are falling under Architect service, Airport A manufacturer cannot avail credit on Service, Major Port Service, Other Airport Servies, if he uses such services A service provider cannot avail credit on Port Service, Commercial or for construction of a building, or a civil Airport Servies, if he uses such services industrial construction service, structure, or for laying foundation or for for construction of a building, or a civil Construction of Residential making support structures for capital structure, or for laying foundation or for Complex Service or Works goods. But when used in or in relation making support structures for capital Contracts service, then credit on to manufacture and clearance of his final goods. But when Airport services are Airport service would be allowed, products, eg. import of raw materias, used for providing the output service, even if it is in relation construction export of final products, etc. Credit credit woudl be admisible. of a building or civil structure, would be entitled. laying of foundation or for support structures for capital goods. If the output services are falling under Architect service, Airport Service, Major Port Service, Other A manufacturer cannot avail credit on A service provider cannot avail credit on Port Service, Commercial or Architect Servies, if he uses such Architect Servies, if he uses such industrial construction service, services for construction of a building, or services for construction of a building, or Construction of Residential a civil structure, or for laying foundation a civil structure, or for laying foundation Complex Service or Works or for making support structures for or for making support structures for Contracts service, then credit on capital goods. Credit can be taken, if capital goods. Credit can be taken, if Architect service would be used for any rennovation, modernisation used for any rennovation, modernisation allowed, even if it is in relation or repair of buildings. or repair of buildings. construction of a building or civil structure, laying of foundation or for support structures for capital goods. For a service provider, if this service is Generally NO. It can hardly be an input A case to case approach is used for providing his output service, service for a manufacturer. necessary. then credit would be entitled. The definition of input service covers "financing". If the assets are auctioned for YES. The definition of input service covers "financing". NO. It can hardly be an input service for a manufacturer. If the services are availed by an employee, it would be treated as primarily for use or consumption by the employee. YES. The various activities covered in the definition of BAS woule be in relation to manufacture (production or processing) of final products, advertisement and sales promotion, etc. Generally No. But in some cases it can qualify as input service. For example, if a celebrity actress is endorsing and promoting a brand (zzzzq), then beauty parlour service can be an input service for the actress. YES. The various activities covered in the defintion of BAS would be used for provding output service or for advertisment or sales promotion, etc.

Air Travel Agent (l)

Airport services (zzm)

Architect (p)

5 6 7

Asset management (zzzzc) Auctioneering (zzzr) Banking and other financial services (zm)

Beauty parlours (zq)

Business auxiliary service (zzb)

10

Business exhibition services (zzo)

YES. It would be in relation to advertisement or sales promotion. Specifically covered in the definition. YES. Generally such services would be in relation to hadling of raw materials, capital goods, finished goods, etc. and hence in relation to manufacture and clearance of final products. Normally service providers would not be availing this service. If availed, its nexus with the output service rendered shall be seen.

11

Cargo handling (zr)

12

Chartered Accountant (s)

YES. The definition covers, accounting, auditing and financing. YES. Generally it would be indirectly relating to manufacture as keeping the premises clean is important for the manufacturing activity. YES. The service would be availed in respect of raw materials or finished goods. It will be directly or indirectly relating to manufacture and clearance of final products upto the place of removal. Generally NO. It cannot be said that cleaning is used for providing output service. YES. If this service is availed by a service provider, it would normally be in relation to some goods which are required for providing the service.

13

Cleaning activity (zzzd)

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Clearing & Forwarding Agents (j)

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S.No.

Category of Service & sub clause under Section 65 (105)

Eligibility and ground for eligibility For Manufacturers Generally NO, as these services would be used only in relation to investments made. If availed in respect of "financing" credit would be eligible. For service Providers Generally NO, as these services would be used only in relation to investments made. If availed in respect of "financing" credit would be eligible. Further, for services like stock broker, sub broker, this would be an eligible input service.

Remarks

15

Clearing House (zzzzi)

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Club / Associations (zzze)

NO. It can hardly be an input service for a manufacturer or service provider. If availed in respect of an employee, would be cosntrued as being service for the personal use of the employees. YES. If such coaching and training is in YES. If such coaching and training is relation to techical aspects of useful for the output service provided. manufacture, quality improvement, etc.

Still it an be argued. For example, the club membership for a lawyer or CA helps in promotion of his business.

17 18

Commercial coaching and training (zzc) Company Secretary (u)

19

20

21

22 23

24

YES. The definition covers legal services and the services rendered by them are No, except where the output services are falling under Architect service, Airport Service, Major Port Service, Construction of complex (zzzh) NO. Specifically barred. Other Port Service, Commercial or industrial construction service, Construction of Residential Complex Service or Works Contracts service. YES. This service would normally be YES, when this service is used for Consulting Engineers (g) used in or in relation to the manufacture providing output service. of the final products. No, if such service is for construction of a building or civil structure, laying of foundation, support structures for capital NO. Specifically barred. If such service goods, except where the output is for construction of a building or civil services are falling under Architect structure or laying of foundation or for service, Airport Service, Major Port Contruction services in respect of commercial or support structures for capital goods. If Service, Other Port Service, industrial building and civil structures (zzq) this service is used for any other Commercial or industrial construction purpose, like repairs / rennovation / service, Construction of Residential modernisation to the factory or office, Complex Service or Works Contracts credit would be admissible. service. Credit would be admissible if it is used for repair / modernisation / rennovation. NO. May be an input service for a Cosmetic / Plastic surgery (zzzzk) NO. celebrity actress rendering promotional / endorsement services. YES. The definition covers, accounting, auditing and financing. Cost Accountant (t) Only it can be related to despatch of purchase orders for raw materials, YES. As it would be used for providing Courier Agency (f) despatch of invoices, as they can be output service. considered as indiectly in relation to manufacture and clearance. Credit Rating Agency (x) Custom House Agents (h) YES. Specifically covered in the definition. YES. As this would be in relation to import of raw materials and export of final products. YES. As it would be relating to the product or advertisement or sales promotion. Normally YES. To be seen on case to case basis. YES. As it would be relating to advertisement or sales promotion.

25 26

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Design Services (zzzzd)

28

Development and supply of content (zzzzb)

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Franchise services (zze)

30

General Insurance (d)

31

Health clubs and fitness centres (zw)

32

Hospitals

The service itself is taxable only when provided for telecommunication service providers, online information and Not relevant for a manufacturer. database access and retrieval service providers and advertising agency servie providers. They can take credit. YES. If the franchisee right has been YES. If the franchisee right has been granted with reference to manufacture of granted with refernce to provision of a the final product. taxable service. YES But credit would not be allowed for YES. If the insurance is in relation to insurance of vehicles, except when the plant and machinery, building, etc. But service provider is in the category of credit would not be eligible if the courier, tour operator, rent a cab insurance is in relation to motor operator, cargo handling agency, GTA, vehicles. outdoor caterer, pandal and shamiana contractor. NO. May be an input service for a NO. celebrity actress rendering promotional / endorsement services. NO. AS they would be construed as for Normally NO if related to employees. being used / consumed primaily by But for an insurance service provider, employees. Otherwise credit can be this is an input service. taken.

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S.No.

Category of Service & sub clause under Section 65 (105) Insurance auxiliary service relating to life insurance (zy) Insurance auxiliary services (zl) Intellectual property services (zzr) Interior Decorators (q)

Eligibility and ground for eligibility For Manufacturers For service Providers

Remarks

33 34 35 36

NO. If taken in respect of employees, as it would be cosntrued as primarily for the employees own benefit. But this would be an input service for the insurance service providers. YES. If the IPR is in relation to the final product manufactured. YES. If it is in relation to the factory area, show rooms ( relating to advertisement and sales promotion) If the journey is in relation to manufacture, market research, sales promotion and other activities covered in the definition of input service. YES. If it is in relation to the manufacturing process, or networking. YES. Specifically covered in the definition. YES. When the service is relating to plant, machinery, factory building etc. YES. When the consultancy relates to manufacture, clearance, financing, and other functional areas. YES. If its nexus to the output service can be proved. YES. If it is in relation to the premises of the output service provider. YES. If the journey is for providing output service or for sales promotion. YES. When used for providing output service. Yes. Specifically covered in the definition. YES. When used for providing output service. YES. When used for providing output service.

37

International journey by air (zzzo)

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IT Services (zzzze) Legal Consultancy (zzzzm) Maintenance and repair services (zzg) Management Consultancy (r)

42

Mandap Keepers (m)

Credit would be allowed if used for some advertisement, sales promotion. Would not be allowed if used for any employee welfare activities. YES. As the manpower procured / recruited would be used in or in relation to manufacture and clearance of final products, directly or indirectly. Specifically covered in the definition also.

43

Manpower Recruitment Agency (k)

YES. As the manpower procured / recruited would be used for providing output service. Specifically covered in the defintion also.

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Market Research Agency (y) On-line information and database access and/or retrieval services (zh) Opinion poll services (zzs) Outdoor catering (zzt) YES.

YES. Specifically covered in the definition. YES. YES. If it relates to market research or sales promotion. NO. As it would be presumed as primarily for use or consumption by the employees. YES. If used for providing output service. Example. It can be an input service for storage and warehousing service and cargo handling service. Credit would be allowed if used for some advertisement, sales promotion. Would Credit would not be allowed if port services are availed for constuction of a building or civil structure or for laying foundation or for making support Credit would not be allowed if port structures for capital goods, for a service services are availed for constuction of a provider, except when the service building or civil structure or for laying provider is an Architech, Port Services, foundation or for making support Other Port Services, Airport Servies, structures for capital goods, for a Commercial or industrial Construction manufacturer. If availed for any other service, construction of residential purpose, credit would be allowed. complex service or works contract Example : Port services availed for service. If port services are not used for inward transportation of inputs and construction of a building or civil clearance of final products. strucrure, laying of foundation or for making support structures for capital goods, credit can be availed, if it is otherwise used for providing the output service. YES. As it would be relating to clearance of final products upto the place of removal. Yes. Advertisement or sales promotion YES. If used for travel in relation to any of the activities covered in the definition of input service. If the travel is for the eimployees own benefit, credit would not be allowed. NO. Credit can be taken only by service providers under the category of courier, tour operator, rent a cab, cargo handling, GTA, outdoor catering,Pandal and Shamiana contractors. Still it can be argued that providing food is an employee perk / statutory requirement, in

48 49

Packaging (zzzf) Pandal or Shamiana services (zzw)

50

Port services - Major Ports (zn), Other Ports (zzl)

51

Promotion or Marketing of goods, brands, etc. (zzzzq)

52

Rail travel agents (zz)

53

Rent-a-cab Operators (o)

NO.Specifically allowed only for some service providers.

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S.No.

Category of Service & sub clause under Section 65 (105)

Eligibility and ground for eligibility For Manufacturers For service Providers YES. If the building is in or in relation to manufacture and clearance of final YES. As the building would be used for products. The show room rents can also providing output services. be availed as credit on the ground of sales promotion. Yes. Advertisement or sales promotion YES. If such consultancy is relating to manufacture of the final products. Yes. If such consultancy is for providing output service.

Remarks

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Renting of immovable property (zzzz)

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Sale of space / time for advt (zzzm) Scientific and Technical Consultancy Services (za) Security (w)

YES. Specifically covered in the definition. NO. Credit can be taken only by service providers under the category of courier, tour operator, rent a cab, cargo handling, GTA, outdoor catering,Pandal and Shamiana contractors.

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Service station for servicing of motor car and two wheeled motor vehicle (zo)

NO.Specifically allowed only for some service providers.

59

Site formation, etc. (zzza)

60 61

Stock Brokers (a) Storage and warehousing services (zza)

62

Supply of tangible goods (zzzzj)

63 64

Support services for commerce / business (zzzq) Technical testing and analysis (excluding health and diagnostic testing); Technical inspection and certification service. (zzh) & (zzi) Telcommunication Service (zzzx)

YES if used for modernisation, rennovation and repairs to service providers' premises. This service can be an input service for construction services, WCS services, etc. YES. Being in relation to "financing". YES. As they would be in relation to YES. If they are used for providing manufacture and clearance of final output service. For example, for a C & F products or storgage of inputs or final Agent or CHA, this can be an input prodcuts. service. YES if such goods are used for providing output service. If the goods YES. Unless it is in relation to motor invovled are motor vehicles, cCredit can vehicles. Such goods must be used in be taken only by service providers under or in relation to manufacture and the category of courier, tour operator, clearance of final products. rent a cab, cargo handling, GTA, outdoor catering,Pandal and Shamiana contractors. YES. YES. YES, if used for modernisation, rennovation and repairs to factory / office of manufacturer. YES. Quality control is specifically covered. YES. This service would be used for any of the activities covered in the definition of input service. YES. Unless it is used for the personal use / consumption of employees.

65

66 67 68 69

Tour Operator (n) Transport of goods by air (zzn) Transport of goods by rail (zzzp) Transport by inland water (zzzzl)

70

Transport of goods by road - GTA (zzp)

YES. As such transportation would be either in relation to inward transportation of inputs or outward transportation of final products upto the place of removal

YES, If such services are used for providing output service.

71 72 73

Transport of goods other than water - through pipeline or conduit (zzz) YES. If used for travel in relation to any of the activities covered in the definition of Travel agents (other than air/rail travel agents) (zzx) YES. Relating to financing. Underwriting Services (z) Credit would not be allowed if Works Contract services are availed for constuction of a building or civil structure or for laying foundation or for making support structures for capital goods, for a service provider, except when the Credit would not be allowed if Works service provider is an Architect, Port Contract services are availed for Services, Other Port Services, Airport constuction of a building or civil structure Services, Commercial or industrial or for laying foundation or for making Construction service, construction of support structures for capital goods, for residential complex service or works a manufacturer. If availed for any other contract service. If Works Contract purpose, credit would be allowed. services are not used for construction of Example : Availed for repair or a building or civil strucrure, laying of rennovation of factory building. foundation or for making support structures for capital goods, credit can be availed, if it is otherwise used for providing the output service. Example: Works Contract services availed for repairs or rennovation to the premises of service provider.

74

Works Contract (zzzza)

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S.No.

Category of Service & sub clause under Section 65 (105) Restaurents and Accommodation in Hotes (zzzzv) & (zzzzw). To be effective after the Finance Bill is passed.

Eligibility and ground for eligibility For Manufacturers For service Providers

Remarks

75

YES. If used in relation to any of the activities covered in the definition of input service.

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