Can we paid s.tax on erection services by excise duty.

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2013 Dear sir,

We are a manufacturer & service provider of erection & BAS . can we make the payment of Service tax by excise duty cenvat. As per Cenvat credit Rule 2004 rule 3 we can paid S.Tax on output services. but excise department not satisfied. please clear our issue

Arun Kumar Singh

Arun Kumar Singh (Expert)

26 August 2013 Excise department is saying correct. You can take the cenvat credit in relation to erection and BAS.

CA Suresh Jain

CA Suresh Jain (Expert)

27 August 2013 The term input includes "all goods used for providing any out put service", and
the term "goods" is means all movable property.

The CENVAT credit thereffore is allowed to be taken on all inputs if used for the provision of the out put service.

It is also within the rule to utilise the CENVAT credit lawfully availed for payment of service tax on out put service. Only the service tax payable

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

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