Cenvat Credit.
This query is : Resolved
Rajiv Ranjan Singh
(Querist)
19 October 2009
I have a valid Service Tax Registration under the headings:: Works Contract,Renting of Tangible GOOds,Business Auxillary Services.
I purchased Capital Goods i.e Excavator and Dumpers which are billed with Excise Challans. Can I avail Cenvat Credit on these if I am billing under Works Contract and if Yes in how many years can I take the benefit of excise charged.
Please Help
Rajiv Ranjan Singh,
Youth India Trading Company
I purchased Capital Goods i.e Excavator and Dumpers which are billed with Excise Challans. Can I avail Cenvat Credit on these if I am billing under Works Contract and if Yes in how many years can I take the benefit of excise charged.
Please Help
Rajiv Ranjan Singh,
Youth India Trading Company
ANIL JANGID
(Expert)
19 October 2009
You can avail cenvat credit of capital goods for generation of output service.
as per capital goods cenvat rule you take 50% cenvat current financial year ie 2009-10 and remaining 50% cenvat next financial year.2010-11.
as per capital goods cenvat rule you take 50% cenvat current financial year ie 2009-10 and remaining 50% cenvat next financial year.2010-11.
Shyam Lal Naik
(Expert)
19 October 2009
So far dumpers is concerned, these are treated as capital goods, only if these are used for specified services.
The services mentioned are not specified for the purpose. Hence, you are not eligible for Cenvat Credit on duty paid on dumpers.
The services mentioned are not specified for the purpose. Hence, you are not eligible for Cenvat Credit on duty paid on dumpers.
ANIL JANGID
(Expert)
19 October 2009
You can avail cenvat credit of capital goods ,In case capital goods should be used for providing the output service.
You can avail cenvat credit of capital goods ,In case capital goods should be used for providing the output service.
Shyam Lal Naik
(Expert)
20 October 2009
The relevant definition relevant for dumpers as per rule 2 (a) (B) is:
"motor vehicle registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the Finance Act;"
Dumpers, for being eligible for cenvat should satisfy the twin conditions:
1. It should be registered in the name of service provider and
2. Should be used for providing the following services:
1. Courier Services
2. Tour Operator Services
3. Rent a cab Services
4. Cargo Handling Services
5. Goods Transport Agency Services
6. Outdoor Caterer Service
7. Pandal or Shamiana Contractor Services
If the motor vehicle is used for providing any other service, credit is not available.
I fully agree with the view expressed, so far as exavator is concerned.
"motor vehicle registered in the name of provider of output service for providing taxable service as specified in sub-clauses (f), (n), (o), (zr), (zzp), (zzt) and (zzw) of clause (105) of section 65 of the Finance Act;"
Dumpers, for being eligible for cenvat should satisfy the twin conditions:
1. It should be registered in the name of service provider and
2. Should be used for providing the following services:
1. Courier Services
2. Tour Operator Services
3. Rent a cab Services
4. Cargo Handling Services
5. Goods Transport Agency Services
6. Outdoor Caterer Service
7. Pandal or Shamiana Contractor Services
If the motor vehicle is used for providing any other service, credit is not available.
I fully agree with the view expressed, so far as exavator is concerned.
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