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Cenvat of service tax

This query is : Resolved 

21 July 2016 hello expert,

one of my client engaged in manufacturing of cosmetics product. and it has getting Exemption in excise duty by central excise notification.

my query is can company avail CENVAT of service tax.because exemption only for cenvat of excise duty.

21 July 2016 Lots of units are availing area based excise exemptions like in Himachal, Uttaranchal & North East. They are exempted from Central Excise duty only not from Service Tax. They have to follow Service Tax. When you are not liable for Excise Duty what you will do after availing Service Tax credit because whatever service tax liability must be coming they must be under Reverse Charge / Declared services for which you have to pay liability in cash.


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