Cenvat credit in bank

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This query is : Resolved

CA Chetan Singhal (Querist)

18 September 2012 what is the procedure of claiming cenvat credit in bank. up to what extent bank can claim cenvat credit in his return (i.e percentage of claiming cenvat)

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

19 September 2012 The CENVAT Credit of Service Tax paid on Bank Charges can be taken either by collecting transactionwise Bank Advise. Another way is that you have to ask the bank to furnish the Certificate along with statement showing the details of service tax on service charges collected by the bank from you. You can ask the certificate from bank either Quarterly / Half Yearly / Yearly. Such certificate and statement must be signed by any authorised person of the bank. You can avail CENVAT Credit of Service tax on the basis of the statement and certificate provided by the bank. Generally, the banks will refuse to provide, but many companies are collecting such certificate issued by the banks and avail CENVAT Credit on such certificates.

As per amended CENVAT Credit Rules, 2011, NBFC or Banking Co is obligated to pay an amount equal to 50% of the CENVAT Credit availed.

FURTHER INFORMATION LINK IS:

https://www.cbec.gov.in/excise/new-cenvat-rules.htm

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