Cenvat Credit

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Manasa Ranjan Samal (Querist)

12 January 2011 Respected Sir,
A manufacturing Co. collects excise duty on sale of iron product & paid into Govt. after deducting Cenvat credit & Service Tax credit (i.e, Duty Paid = Account Current - Credit Account). I want to know the calculation of Credit Account on both CENVAT & Service Tax is being made. Kindly explain with example taking capital goods & inputs with input service tax on freight.

Thanks

Ram Avtar Singh

Ram Avtar Singh (Expert)

13 January 2011 Cenvat on capital goods 50% this year and 50% next year.

service tax on freight after rebate 75% deposit @10.3% to govt after that take cenvat credit 100%

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Manasa Ranjan Samal

Manasa Ranjan Samal (Querist)

13 January 2011 Thank you sir for greate support & wants detail with example & your email id.

Ram Avtar Singh

Ram Avtar Singh (Expert)

14 January 2011 suppose Freight Rs. 100
Rabate 75% =Rs.75
Balance Rs. 25
Service tax on freight 25*10.3%=2.575

Deposit in bank

service tax Rs. 2.5
Cess .005
Cess S&H Rs. .0025

Then take service tax credit Rs. 2.575

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Manasa Ranjan Samal

Manasa Ranjan Samal (Querist)

15 January 2011 Sir,
You clarified that Cenvat on capital goods 50% this year and 50% next year.
Suppose we have taken Cenvat credit in F.Y. 2009-10 in every month, Whether I will taken balance 50% in the F.Y.2010-11 in the exact amount in particular month i.e, 50% balance of April'09 in April'10, May'09 in May'10, respectively or I can take rounding up the figure in any amount. Is there any limit & restrictions?

Thanks

Ram Avtar Singh

Ram Avtar Singh (Expert)

15 January 2011 all 50% balance you can take cenvat credit on 1st april. next year

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