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Cenvat cr. urgent

Service Tax (Legacy) 496 views 9 replies
I have an querry I purchased 1 genset from First sell dealer on which excise duty is payable but we are service provider.. So my question is can we take credit of excise duty paid on genset over service tax... Pls help with sec.
Replies (9)

Since you are a service provider you cannot claim Input of excise duty paid on purchase of Capital goods.

As I understand, there is no such restriction for availing cenvat credit on capital goods for service providers. What if capital goods are required for providing output service?

Refer Rule 4. Conditions for allowing CENVAT credit:

https://www.cbec.gov.in/htdocs-cbec/excise/cxrules/new-cenvat-rules

Dear Mr. Deepak

If the Genset is purchased for purpose of providing output taxable service then CENVAT can be availed and utilized to the extent of 50% in first half year and balance 50% in next year.

Note the capital good definiton is given in CENVAT Credit Rules 2004 

Agree with poornima
Thank you everyone...
Yes u can take cenvat credit of excise paid on capital goods purchased, for use in providing services other than exempted services (as defined in Cenvat Credit Rules, 2004). 50% credit of excise duty shall be book at the time receive of goods and remaining 50% in the next year F.Y.
U can take cenvat input for genset at 50% in first year only. Rest 50% at forthcoming years. Cenvat input adjust with service output
U can't claim the same
Hello @ kapil Why can't claim the credit???


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