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regarding cenvat

saroj ( Dedicated Article) (77 Points)

06 July 2010

We can use "service tax recoverable" for the payment of excise but Can we use service tax paid on telephone expenses for the payment of excise?

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10 Replies

Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
Replied 07 July 2010

Yes, you can use Input Service credit for Excise Duty payments, also you can avail service tax credit of telephone bills related to your factory.

srinath (Article trainee) (1433 Points)
Replied 08 July 2010

input is something which is used in relation to manufature.. so if telephone is used in relation to manufacture cenvat credit can be taken

(Guest)

Any service is relating to your business you can avil the cenvat

srinath (Article trainee) (1433 Points)
Replied 09 July 2010

Mr. Yogesh am afraid that u r wrong

suppose there are branches of manufacturing unit which does not manufacture but just do trading activity, the services in those units are not eligible for cenvat. even if those services are in relation to business unless they are in relation to manufacture they are not eligible

saroj ( Dedicated Article) (77 Points)
Replied 09 July 2010

thanks for these information, but tell me how the cenvat is calculated as, XYZ manufactuing co. is paying service tax on GTA (Good transport Agency) on which he pay service tax only @ 25% of the receipt. Can we take service tax credit in case of abatement/.

Ajay Raghatate (Sr Executive (Excise & Accounts)) (736 Points)
Replied 09 July 2010

yes you can avail cenvat credit, of service tax paid on GTA , (only for Inward & upto depot / warehouse freight, you can't availed cenvat credit of Service tax paid on Outward freight ).