14 August 2011
We are importing some Computer on which we have to pay cvd. These computer will be given on rent. whether in this case can cvd be set off against service tax payble on rent
14 August 2011
CVD is Countervailing duty which will be equal to Excise Duty levied in India hence it is equal to ED input hence it can be used to set off with Service Tax Payable provided subject to other conditions for CENVAT Credit for Utilizing the Input
15 August 2011
From the facts, CENVAT is available.
However, please check whether Service tax is applicable ?
If effective possession and control is transfered, VAT is applicable and not Service tax. Normally, the computer will be installed at the customer's premises.
16 August 2011
We are giving computer on rent. According to VAT right to use is covered under VAT as such VAT is applicable. But after 2008 Tangible assets given on rent is covered under service tax. Whether Both tax can be applicable, if not which one will be applicable
CAclubindia
