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)
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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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