24 December 2007
Cenvat credit is availed by the person who have already paid service tax on any other service availed - e.g. I have paid telephone bill amount of Rs.5,000 which include Rs. 600 as service tax shown in the bill. Then I have go through the another transaction. I am taking coaching classes and I have collected fees with the amount of service tax. Yhen I have not to pay the Government upto the amount of Rs. 600 and if paid I am entitle for refund from the Government.
24 December 2007
Any service giver company collect service tax from the customer. he can adjust the amount on the raw material or on any other service availed and service tax already paid by the company.
CAclubindia
