Cenvat credit

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Dear Sir, We are registered as taxable service provider and trader. Can we take input of excise duty paid on purchased material for trading.
Replies (4)

If you are registered under Central Excise, you can take.

Dear Sir, 

Thanks for the reply.

We are not registered with excise. 

It means we cannot take cenvat credit of excise.

Mr Sanjeev Kumar,

Cenvat credit eligible to Manufacturers who uses inputs (Raw materials) in manufacturing process and make final product and paying excise duty on such final product.

Further, Cenvat Credit eligible to Service providers who consumes/uses input (raw materials) in providing output service paying service tax.

As per your query, since you will be using those goods for trading, you cannot avail benefit of cenvat credit on input purchased which are used for trading.

Venkatanarayana GM

9620116162

To be qualify as Input in Cenvat Credit Rules, 2004 , Rule 2(k)(iv), raw material on which excise is paid have to be utilise for providing any output service, unless otherwise speciffically exempt( HSD). Hence do u used this input for providing output service??? If yes then u can take credit.


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