Can cvd set off against service tax

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Sanjay Kumar (Querist)

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

Selvakumar Selvaraj

Selvakumar Selvaraj (Expert)

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

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Sanjay Kumar

Sanjay Kumar (Querist)

14 August 2011 WHAT IS THE OTHER CONDITIONS FOR CENVAT CREDIT

Shyam Lal Naik

Shyam Lal Naik (Expert)

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.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

15 August 2011 I agree with the experts

Sanjay Kumar

Sanjay Kumar (Querist)

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