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Indirect tax

ABHILASHA CHATURVEDI (Student) (139 Points)

22 March 2017

Dear professional, my query is I am carrying out the Audit of a manufacturing company. So during procurement of inputs it pays exice duty and sometimes vat as the case may be.and when it sells the product it charges excise duty and vat/ cst. My query is regarding Cenvat and ITC please explain how will it claim the set off and how it will change with the advent of GST.

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3 Replies

ABHILASHA CHATURVEDI (Student) (139 Points)
Replied 22 March 2017

My second query is, the said company pays service under RCM on GTA and Security services can it use the service tax paid as cenvat credit balance..I hope I have made myself clear . Waiting for your response.

Rakshit (practising) (338 Points)
Replied 28 March 2017

As regards first query, the input tax credit balances whether CENVAT or VAT got automatically will be transferred provided they were proper under the then Rules/Law.

As regards second query, the tax paid under RCM can be availed as Cenvat credit, provided such services fall under the definition of Input Service given Under the Cenvat Credit Rules, 2004. Accordingly if any Service Tax paid under RCM on Outward GTA beyond the place of removal would not be eligible for credit.

Raksh*t

9810525780

Rakshit (practising) (338 Points)
Replied 28 March 2017

As regards first query, the input tax credit balances whether CENVAT or VAT got automatically will be transferred provided they were proper under the then Rules/Law.

Raksh*t

9810525780