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Centvat credit (Service Tax)

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This query is : Resolved

Author : Anonymous

( Author )
29 July 2012

How to calculate Centvat credit against servise tax payable by service provider


RENGARAJ R.K

( Expert )
30 July 2012

First of all please check up the eligibility as to whether cenvat credit taken by you on services & goods are in relation to the output tax i.e service tax payable by the service provider.

Next, whether your unit is doing any non-excisable or exempted services other than the taxable one. If not, you can take credit and avail the entire credit while paying the out put tax.
E.g Cenvat credit : Rs.1200.00
Cess : Rs. 360.00

Cenvat output tax : Rs2500.00
Cess : Rs. 750.00

Less: cenvat (-)Rs.1560.00

Payment = Rs.1690.00




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