Cenvat Credit

Hi Parag,

Service provider can take the cenvat credit of duties paid on the inputs, capital goods and the Service Tax paid on the ‘input’ services. But such material should be purchased only from manufacturer or first stage dealer or second stage dealer.

 

A SERVICE PROVIDER CAN GET TAKE THE BENEFIT OF CENVAT CREDIT ON INPUT GOODS, CAPITAL

GOODS AND INPUT SERVICES ON FULFILLMENT OF THE FOLLOWING TWO CONDITIONS:

1. THE SERVICE PROVIDER MUST BE REGISTERED &

2. HE MUST HAVE CHARGED SERVICE TAX ON THE SERVICE PROVIDED.