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Cenvat

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Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 IS "CENVAT CONCERN TO SERVICE TAX. IF YES THEN WHAT IS IT

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)

11 October 2012 Cenvat is very much concerned to service tax. Cenvat is nothing but the mechanism by which the amount of service tax paid on capital goods / inputs / input services used for providing outpout services can be set off against the service tax payable on the output services.

For example I rendered a service agsint which service tax of Rs 100 is payable. However for rendering tjis service I obtained a service on which I had paid Rs 20 as service tax. Here I can utilise cenvat credit of Rs 20 and deposit only an amount of Rs 80 with the Govt.

Hope this would settle the querry.

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 thank u very very much sir, can please focus on , when we paid telephone bill of our company , can we utilised the service tax paid on .

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