CENVAT CREDIT

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This query is : Resolved

DINESH PATEL (Querist)

26 January 2009 " We are doing job work of electroplating and registered under Service Tax. We are charging service tax to all customers, Excise goods manufacturers and non excise goods manufacturers. If Excise goods manufacturers pay us service tax, do they get refund of the service tax paid to us? "
If excise goods manufacturers are exempted from paying service tax as they are paing excise on the removal of their final product than we are restricted to collect the tax at any cost ? or we can charge the service tax and pay it to government.?
In above case if we have charged the service tax and paid it regulerly to govt. than the manufacturers are eligible for servic tax credit ? "
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sai kiran

sai kiran (Expert)

26 January 2009 If excise goods manufacturers pays service tax to you, they are entitled to take CENVAT credit on the strength of invoice raised by you. It is immaterial to them whether you remit the tax to the government or not.

DINESH PATEL

DINESH PATEL (Querist)

26 January 2009 Excise dept. says, service tax is exempted so credit is not possible. Excise goods manufacturers are exempted from paying service tax as per notification of 1st March 2005. I have charged service tax and paid to Govt. but my customers are not getting credit of the service tax. Can we fight with excise dept.?

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