service tax

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This query is : Resolved

sanjay gupta (Querist)

31 July 2009 hello,
my company is in the distributor ship of computer hardware, software and telecommunication equipments right from their import to selling in the domestic market. at the same time we are providing services on networking done.on import we are paying basic duty, cvd, ed. cess and SHEcess apart from additional custom duty. we are regiestered with service tax authority. can the duty paid on import be setoff against service tax liablity and if so under which section of ST act.pls reply ASAP

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

01 August 2009 tHE CREDIT OF THE cvd ( ADDITIONAL DUTY OF CUSOTMS= EXCISE DUTY) can be availed for inputs used in provding the service of networking provided that the St is paid on the gross amount without cliaming any exemption/ abatement.\
Traded goods credit cannot be used for paying the service tax.

sanjay gupta

sanjay gupta (Querist)

04 August 2009 dear sir,
thanx for the reply. further elaborate whether only CVD is allowed to be taken credit or other components like ed.cess, SHEcss, basic duty of customs are also allowed to be taken credit from the service tax liablity. pls clarify ASAP.

regards
sanjay gupta

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