Cenvat Credit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 November 2010
A Govt. Company manufactures eight to nine products out of which two products are excisable. This being a process industry.
Can Cenvat Credit can be availed of
a. Excise duty paid on the procurement of raw materials. and
b. Service tax paid on the expenses of Security forces.
However, no clear cut bifurcation is possible nor made to indentify the raw materials procured for each product. Similary the security charges is also for the entire plant and product wise is not identifiable.
If the Cenvat Credit can be availed then,
a) is it on the total amount of service tax paid by the Co. or only limited to two products which are excisable.
or
b) Or can Modvat credit can be avialed on the entire service taxes paid for all the products incling excisable and non - excisable.
For costing purpose based on pre-determined per centage allocation of various expenses is made, can this be the base for claiming Cenvat Credit
Pl. clarify:
Can Cenvat Credit can be availed of
a. Excise duty paid on the procurement of raw materials. and
b. Service tax paid on the expenses of Security forces.
However, no clear cut bifurcation is possible nor made to indentify the raw materials procured for each product. Similary the security charges is also for the entire plant and product wise is not identifiable.
If the Cenvat Credit can be availed then,
a) is it on the total amount of service tax paid by the Co. or only limited to two products which are excisable.
or
b) Or can Modvat credit can be avialed on the entire service taxes paid for all the products incling excisable and non - excisable.
For costing purpose based on pre-determined per centage allocation of various expenses is made, can this be the base for claiming Cenvat Credit
Pl. clarify:
Rajesh Kumar
(Expert)
06 December 2010
As you already have a costing formula, you can take credit on that percentage which is going into the manufacture of dutiable products.
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