Availment of cenvat credit in case company is output service

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CA MONIKA GOENKA (Querist)

08 February 2013 Company is engaged in providing output services and paying service tax under composition scheme. Also w.c.s.t. is deducted from running account bills raised in case of providing services. My question is whether cenvat credit of excise duty can be taken which is levied on purchases??? please provide relevant sections and rules supporting your answers.

Arun Kumar Singh

Arun Kumar Singh (Expert)

10 February 2013 Excise duty paid on input goods used by service providers is eligible for cenvat credit.

CA MONIKA GOENKA

CA MONIKA GOENKA (Querist)

11 February 2013 but the definition of input does not give inclusion of goods by output service provider. can you give me the reference of act and rules supporting your answer

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 February 2013 The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputs in the factory of the manufacturer or in the premises of the provider of output service under rule 4(1) of the cenvat credit rules 2004.

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