Cenvat credit of cvd for payment of service tax

Ankush Pagaria (N.A.) (49 Points)

22 June 2014  

The Assessee (A)  is a Registered Service Provider providing Taxable Service and Receiving Taxable Services. The Assessee buy Goods (Not Capital Goods) from an Importers (I) in India.  In Terms of Cenvat Credit Rule "I" is a First Stage Dealer and "A" is a Second Stage Dealer. The Details of Import Duty paid by "I is as under :

Assessable Value = Rs 226

CVD @ 6% = 13.56

Cess @ 3% = .82

Special CVD = 9.62

"I Being First Stage Dealers passess on the Duty CVD @ 6% to "A" ie Second Stage Dealer under a Cover of Invoice. This can also be utilized by "A" The Payment of Service Tax The Queries are as under :

*  How can A Use this CENVAT Credit for Payment of Service Tax

* What are the Records to be Maintained by "A" for Utilization of Cenvat Credit

* "A" Already files ST -3 Return, is there any need to file additional Returns for Cenvat Credit

* if "A" further Wants to pass on the Credit to his Dealers , then what would be the procedure ?

* Is there any requirement of register to be maintained ?

* Is the Dealer of "A" required to do additionally to avail cenvat credit passed on to him by "A" ie second stage Dealer