I do trading of services in metal finishing business. My business is registered under Service tax - BUSINESS AUXILIARY SERVICES. I get material from customer, get it processed at outside and return the material to customers. I pay service tax when I get services and I collect service tax from my customers. Practically, I am a middle man.
As per notification of March1, 2005, payment of service tax is expeted for manufacturers registered under Central Excise for using service in manufacture of exciseble goods . If I get declaration from my customer not to charge service tax, I have to bear service tax paid on work done outside. In this case, I loose business. If I charge service tax from the manufacturers of exciseble goods, do they get credit of service tax paid to me?
Example:
A is my customer.
B is my supplier.
I get material from A for processing. I give it to B for processing. B does the work and bills me for Rs. 100/- + tax Rs. 12.36 = Rs. 112.36
I give back the material to A with bill of Rs. 120/- + tax Rs. 14.83= Rs. 134.83.
I pay the tax amount Rs. 14.83( collected) - 12.36( paid on purchase of services) = Rs. 2.47
A is registered under CE and in this case, shell A get credit of Rs. 14.83 paid to me as service tax?

WE HAVE RECEVIED SUB CONTRACT WORK FOR MANUFACTURING OF ENGINEERING GOODS FROM EPC CIVIL CONTRACTOR WHERE IN WE HAVE RECEIVED ALL THE MATERIAL FREE OF COST FROM OWNER OF THE PROJECT. HOWEVER AS WE HAVE RECEIVED ORDER FROM EPC CONTRACTOR WE WILL RECEIVE AMOUNT FOR ONLY FABRICATION AND ERECTION OF MACHINERY MANUFACTURED BY US.

IN THIS CASE WE HAVE TO CHARGED THE EXCISE DUTY ON WHICH AMOUNT ON OUR SUB-CONTRACT VALUE OR VALUE OF MATERIAL AND OUR SUB-CONTRACT VALUE.

WE HAVE RECEVIED SUB CONTRACT WORK FOR MANUFACTURING OF ENGINEERING GOODS FROM EPC CIVIL CONTRACTOR WHERE IN WE HAVE RECEIVED ALL THE MATERIAL FREE OF COST FROM OWNER OF THE PROJECT. HOWEVER AS WE HAVE RECEIVED ORDER FROM EPC CONTRACTOR WE WILL RECEIVE AMOUNT FOR ONLY FABRICATION AND ERECTION OF MACHINERY MANUFACTURED BY US.

IN THIS CASE WE HAVE TO CHARGED THE EXCISE DUTY ON WHICH AMOUNT ON OUR SUB-CONTRACT VALUE OR VALUE OF MATERIAL AND OUR SUB-CONTRACT VALUE.

Can anybody provide any article or important points on Cenvat Credit Rules

Hi,

We are a STPI unit, we have some chairs which are custom bonded (indigenious purchase against CT-3), now we are planning to sale these off. kindly let me know which are the taxes applicable for that?? and the rates for the same. say for example we have a chair of Rs 100/- (excluding taxes) what would be its selling price??

Nazir

HELLO,

WE ARE DOING TRADING BUSINESS WITHOUT TAKING ANY EXCISE REGISTRAION, FOR THAT WE ARE IMPORTING THE MATERIAL FROM FOREIGN COUNTRY AND SAILING IN LOCAL MARKET ON TAX INVOICE, WE HAVE TAKEN IEC NO FROM DGFT FOR IMPORTING THE MATERIAL, NOW MY QUERY IS THAT WHENEVER WE ARE IMPORTING THE MATERIAL THAT TIME WILL HAVE TO PAY CVD ON THAT MATERIAL WHICH IS APPLICABLE,HOWEVER THERE IS ANY RULE OR ANY SCHEME FOR SAVING THE CVD ON IMPORT MATERIAL SO WE CAN REDUCE OUR TRANSFER PRICE.

Dear Sir,
My query is related to Excise which is as follows:
I have a manufacturing plant at,say, Bangalore. It is registered as an Excisable plant. Customers to whom I sold the manufactured Goods,say Tool, and some other customer (Customer who purchased the Goods of some other Manufacturer)comes to me for sharpning of the Tools.
I took the goods for sharpning in my Excisable plant and do all necessary activities and return the goods to the customers.
Now my Questions:
1. Can I take the Customer's tools to my Excisable plant.
2. If yes, then what are the provisions of the Excise and service Tax act will be attracted.
3. If No, Then what is the way out.


Rajeev

Can any one tell me what is the notification for TERMINAL EXCISE DUTY (TED), because we are claiming to TED from JDGFT, for that we have to take supplier invoices duly attested by central excise range authority.

Then the problem started for me, i.e. I know the procedure for claiming TED, but excise person was asking "Show me the notification of TED, that DGFT will refund the excise amount to the buyer (aganist EPCG licence).

Hence I request you to provide me the notification of rules of TED (that means how the TED was born). Hope its clear that what i explained.

regards
k.ravi

Hi CAs,

Query:

Whether Cenvat credit will be available on input and input services of EPC contracts for constructing Pipelines for Natural Gas?

EPC means Engineering,Procurement and commisioning.So,it includes both Material and Labour. So it includes Excise and service Tax both.

The assessee is service provider dealing in transportation of Gas on which Service Tax in payable.

U may send ur reply on ca.jigneshmaniyar@gmail.com

Thanks in Advance

How should I take cenvat credit on banking charges they do not provide me any bank advise for each and every charge to me......... Can it be available through Bank Statment but this does not contain any signature or any other thing which is a valid document for cenvat credit