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Credit of Service Tax

S. M. Desai (CONSULTANT) (84 Points)

25 June 2009

Dear All,

I would like to to know opinion of all service tax experts, whether one can avail service tax credit if one is not a service provider but a manufacturer? There is lots of confusion in the matter and experts have different opinions.

Opinions of all individuals are very important. Please respond.

Thanking you in anticipation

Best Regards,

S. M. Desai

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5 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 25 June 2009

Manufacturer can register in service tax as goods transport agency. after registration you can take cenvat credit of service tax and setoff with Excise libility.

A. Kiran Kumar (Manager - Indirext Taxation) (156 Points)
Replied 26 June 2009

Originally posted by :S. M. Desai
"	Dear All, I would like to to know opinion of all service tax experts, whether one can avail service tax credit if one is not a service provider but a manufacturer? There is lots of confusion in the matter and experts have different opinions. Opinions of all individuals are very important. Please respond. Thanking you in anticipation Best Regards, S. M. Desai	"

Dear Sir,

There is no any confusion from your query.

Being a manufacturer of final products, can take cenvat credit on input services (service tax credit) and the same can be utilized to discharge the excise duty on clearance of his final product, even though he is not a service provider.

Rule 3(1) and 3(4) of CENVAT credit Rules 2004 support the above.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 26 June 2009

The ST credit to pay the central excise duty and the central excise credit for payment of serrvice tax subject to other conditions has been enabled from 10.9.2004.

Yashpreet (68 Points)
Replied 26 June 2009

yes u can avail the credit of input services used in or in relation to manufacture of final product

vishnukant tailor (se excutive accounts) (36 Points)
Replied 01 July 2009

Dear Desai

yes you can take credit and utilise against service tax and excise payment which is charge to costumer in your bill.where are confuse you are also as consultant and for more knowledge watch the service tax website www.servicetax.gov.in

thanks