CENVAT Credit

We are doing job work  and registered under Business Auxillary Services. We are also registered under VAT as we are using our material whille doing the job. We do nickel plating. Our nickel material is used in doing the work.  We pay VAT  and excise on purchase of nickel material. We charge VAT on 50% of bill amount and Service tax on 50 %  amount. Shell we get credit of input VAT  against output VAT ?Shell we get credit of excise paid on purchase of raw material against Service Tax to pay?  Please help me to solve this query. Thanks,

DINESH PATEL,

AHMEDABAD.

Replies (1)

Yes, credit of central excise duty paid is available as credit for payment of service tax. However, in that case service tax ia payable on full value of job charges.

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