Cenvat credit on import duty
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 December 2014
Suppose, i am an importer and imported clothes in India.
By selling clothes directly to the customers, how can i pass Import Duty so as to avail CenVat credit?
By selling clothes directly to the customers, how can i pass Import Duty so as to avail CenVat credit?
29 December 2014
1 Eligible Cenvat Credit [Rule 3(1) of Cenvat Credit Rules]
¨ Excise duty paid on input goods, service tax paid on input services and excise duty paid on capital goods
¨ CVD (in case of imports which is equal to excise duty)
¨ Special CVD (4%) on imports – credit only to manufacturers
¨ No credit of Education Cess and SAHE cess on imports after 17-3-2012 as that cess is only of customs duty and not of CVD.
¨ Education cess and SAHE cess paid on excise duty and service tax (not on imported goods)
¨ Record of credit of education cess and SAHE cess to be kept separately as the credit cannot be used for basic duty and service tax, but vice versa allowable i.e. Credit of basic excise duty and service tax can be utilised for payment of education cess and SAHE cess.
Credit on receipt of Invoice
¨ Credit can be taken on receipt of invoice, but in respect of Cenvat credit of service tax, if payment is not made to service provider within 3 months, credit is to be reversed.
¨ Proportionate credit of service tax if proportionate amount paid (No specific provision in Rules, but this view is based on principle of harmonious interpretation of law).
¨ No such restriction in respect of excise duty – Credit is available even if no payment is made to supplier-manufacturer of goods.
¨ Excise duty paid on input goods, service tax paid on input services and excise duty paid on capital goods
¨ CVD (in case of imports which is equal to excise duty)
¨ Special CVD (4%) on imports – credit only to manufacturers
¨ No credit of Education Cess and SAHE cess on imports after 17-3-2012 as that cess is only of customs duty and not of CVD.
¨ Education cess and SAHE cess paid on excise duty and service tax (not on imported goods)
¨ Record of credit of education cess and SAHE cess to be kept separately as the credit cannot be used for basic duty and service tax, but vice versa allowable i.e. Credit of basic excise duty and service tax can be utilised for payment of education cess and SAHE cess.
Credit on receipt of Invoice
¨ Credit can be taken on receipt of invoice, but in respect of Cenvat credit of service tax, if payment is not made to service provider within 3 months, credit is to be reversed.
¨ Proportionate credit of service tax if proportionate amount paid (No specific provision in Rules, but this view is based on principle of harmonious interpretation of law).
¨ No such restriction in respect of excise duty – Credit is available even if no payment is made to supplier-manufacturer of goods.
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