Cenvat Credit

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011 Dear All,

Recently we had purchased a generator for an amount of Rs. 16,54,500/-. In this bill we have paid Excise Duty @ 10.3% ie., Rs.1,54,500/-. so shall we take cenvat credit for Excise Duty portion while paying service tax to the govenment.

And neither we don't have any excise duty registration nor excise duty payable amount.

Regards

Ayyappa

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)

14 April 2011 As per Rule 3(1)of CCR,2004
U Can Utilise this Credit for Payment of Service tax Payable.

BED ----- 1.5 Lacs/2 = 75,000 Can be Utilised in First Year Except if u are Selling Gen. in the First Yr Only. (Rule 4)

Remember U Must Have Excise Invoice , For Claiming This Credit U Need not be Registered in Excise but u must be Registered Under ST as per R.6 of Service Tax Rules.

CA Rudresh SR

CA Rudresh SR (Expert)

25 April 2011 Yes, you can claim CENVAT paid to pay service tax to the extent of 50% in the year of purchase and rest in the succeeding year.

CENVAT Credit of the following can only be taken,
1. Excise duty Paid
2. Education Cess paid under Excise
3. SHE Cess paid under Excise

note; Additional duty paid cannot be claimed for paying service tax.

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