Credit for excise duty to service tax
This query is : Resolved
16 November 2015
Dear Sirs,
We import car wash cleaning machines in India. my customer is asking us to register our company with excise department and raise him a cenvat invoice showing excise duty component claiming that they can claim back this amount against service tax that they will be charging on car wash to their final customers. We told thim only SAD of 4% can be adjusted in Service tax and not Excise duty component as this could be availed as input credit by manufacturers.
Please advise if this is true.
Secondly if our customer is right, will we have to share of bill of entry copy with him?
Thanks
Anil Sethi
We import car wash cleaning machines in India. my customer is asking us to register our company with excise department and raise him a cenvat invoice showing excise duty component claiming that they can claim back this amount against service tax that they will be charging on car wash to their final customers. We told thim only SAD of 4% can be adjusted in Service tax and not Excise duty component as this could be availed as input credit by manufacturers.
Please advise if this is true.
Secondly if our customer is right, will we have to share of bill of entry copy with him?
Thanks
Anil Sethi
16 November 2015
The service provider can avail the cenvat credit of input purchase with you. They can only avail CVD. You need to registered under central excise as a dealer then you can passed the excise duty to him.
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