Dear All,
We are registered for service tax under the repair and maintenance category, and we are engaged in both labor work and repairing machines. My query is, we are performing 80% labor work and 20% services in our overall turnover. Are we eligible for availing input credit? If we are eligible, to what extent can we claim - 100% on receipt bills like telephone, security, and machinery repair service bills? Additionally, we have rented out a portion of our building and raised a bill, claiming service tax. Can we utilize the input credit for making payments for rental services and our own service bills?
Kindly provide clarification along with the section code, as we have sought advice from consultants and the service tax department, but each source offers different answers, leading to confusion.
Thank you,
J. Pandiyan