Cenvat Credit

there is a provision in Finance Act regarding-
if any service provider takes %ge based abatement then he will not be entitled to take any credit of Input/capital goods/service tax.

Is there any similar provision in Central Excise????

support your answer with legal provisions.

 

Thanks a Lot

Replies (4)

CENVAT CREDIT RULES ARE OF CENTRAL EXCISE ONLY WHICH IS APPLIED IN SERVICE TAX ALSO, 

INPUT CREDIT IS BARRED IN CASE OF EXEMPTION AVAILED.

The Cenvat Credit Rules covers both  Central Excise and Service Tax credits i.e for input and input services. The percentage of taking credit is is only applicable in case of credit on capital goods, where only 50% of credit can be taken in the year of procurement of the goods and the rest 50% in any subsequent financial year. You can refer to rule 4 of Cenvat Credit Rules 2004 where the manner of taking credit is given You can also refer to Rule 2 (i) of CenvatCredit Rules 2004  for definitions of input and input services.

Sorry Dear

I m asking about percentage based abatement and not about exemption. like fixed percentage abatement in Service tax 75% or 60% so on.

if any product has percentage based Abatement like 40% or 50% of excise then any credit of inputs can be taken? which is not permited in Service tax.

 

YES you can take input credit of abatement based item.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details