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Cenvat credit of education cess and shec

nitin (Student CA IPC / IPCC) (31 Points)

04 June 2016

Sir, My company is service provider and imported some fixed asset. can we take cenvat credit of below mentioned cess. Education Cess on CVD* SHEC on CVD* Education Cess on BCD SHEC on BCD As per new Amendments. plssss.. rply I need a help

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6 Replies

nitin (Student CA IPC / IPCC) (31 Points)
Replied 04 June 2016

Some one please reply.

it's URGENT.

CA Sujeet Kumar (Self-Practice) (738 Points)
Replied 04 June 2016

First Considered some facts below:

1. You can take credit of EC and SHEC but it can't be utilized against payment of other taxes. as it is only utilized against EC and SHEC.

2. Provision of Takinf Credit of EC and SHEC is still available in Rule 3 of CCR 2004.

3. In ST return for Second Half Year of 2015-16. there was still a column where you can show unutilized balance of EC and SHEC.

Further Clarify the calculation of Bill so that exact provision of law will be suggested over it.

nitin (Student CA IPC / IPCC) (31 Points)
Replied 06 June 2016

Thank you very much. SUJEET KUMAR JI for your reply.

sir i have attached cbec notification for more clarification.

please check the attachment.

Attached File : 1244296 20160606144738 cbec notification.pdf downloaded: 163 times

nitin (Student CA IPC / IPCC) (31 Points)
Replied 07 June 2016

sir i have posted the query regarding the same.

please rply.

thank you

Chirag Parmar (Service) (65 Points)
Replied 07 June 2016

Credit of EC and SHEC is paid at the time of import of CG which is used for providing Taxable output service can be availed under rule 3 of CCR, 2004.

Credit of the EC and SHEC may be utilised for the payment of EC and SHEC on output service provided.

However, proviso inserted in sub rule (7) of the Rule 3 of the said rules which allow the credit of EC and SHEC paid on CG which is received in the premises of provider of output services on or after 01.06.2015 may be utilised for the payment of service tax on output service.

Further, reason to insert this proviso was subsuming of EC and SHEC in the rate of service tax and Excise only. If you interpret this proviso laterally then credit may be availed in your case. However, logical interpretation of the same would not allow credit of EC and SHEC for the payment of Service tax on output service provided.

karan jit singh (Consultant) (1299 Points)
Replied 11 June 2016

Originally posted by : nitin
	Sir, My company is service provider and imported some fixed asset. can we take cenvat credit of below mentioned cess. Education Cess on CVD* SHEC on CVD* Education Cess on BCD SHEC on BCD As per new Amendments. plssss.. rply I need a help