Cenvat Credit on service tax

In service tax return(ST3) there is provision for taking CENVAT credit,but confirm it with some professionals.

If your firm has registered in service tax dept. there is no need of any application. Pls fill ST-3 properly & submit into department .

Thanks

Dear Sir. As long as the services availed by your admn. office located i n Maharashtra, is used in relation to manufacture of excisable goods,you can very well avail CENVAT credit of Service Tax paid by your admn. office.

As such also there is provision in C.Ex.Regn. to mention the address of your all offices and manufacturing locations, you are required to mentionsuch Admn. Office address in the additional places of business in C.Ex.Regn.

Regards.

DILIP DARJI

Dear Pinak,

1.  Please seek  Centralized registration for all your premises.

2.  Also get separate registration for Input Service Distributor (ISD) for Maharastra office.

3.  after getting registration for ISD for Maharastra Office you can raise Service Tax Invoice in favour of your Factory. (which is situated outside Maharastra) (i.e. Credit which will be avalied at Maharastra Office on the basis of vendor service invoices. and the same will be distributed to Factory on the basis of invoice prepared by Maharastra Office. The said invoice will have the following details

Sl No.   Inv  No.   Date        Vendor Name & Address              Service Value          Service  Tax      Distribution Ratio                 Service Value (after applying Distribution Ratio)     Amount of  Service Tax Distributed (after applying distribution Ratio)

4. Please also note that you need to file ST-3 for Both Centralized Registration and also for Input Service Distributor.

Mr.Pinak.

As I understand that you have only two locations (1) factory outside Maharashtra(2) Admn. Office in Maharashtra (and the same is not providing any taxable services).

As per Rule 3 of CENVAT Credit Rules, 2004,"a manufacturer of final product shall be allowed to take credit of BED, Cess, SHE, Service Tax, Cess and SHE, on any input, capital goods and input services received by the manufacturer". Your Admn. office and factory are having the same name and therefore Admn. office is an extended arm of your factory and therefore any service tax paid by your admn. office can be very well availed by the factory. As such also in an application for obtaining Central Excise Regstration, there is provision to mention the address of your head office/Admn. Office. Furthermore for availing CENVAT credit of Service Tax paid by your Admn. Office Service Tax Registration is not required. Service Tax Registration is required only when you are providing any taxable services.So according to me Central Excise Regisration obtained by you for the factory, is valid for availing credit of Services tax for the services availed by your Admn. Office.

Mr.Sameer.

As per Rule 7 of CENVAT Credit Rules, 2004, when Service Tax Credit availed by any taxable Service Provider is required to be distributed to the factory or another Plant, Service Tax Registration as ISD is required to be obtained. In the present case we are not aware whether Admn. Office is (1) providing any taxable services (2) distributing Services tax to other plant or other branch. In view of this submission I feel that ISD Registration is not required.

Please give your commets, so as to reach the finality.

DILIP DARJI  

Dilip,

Your office may not be providing any output service however it would certainly be receving input services which are taxable and on whom you can avail CENVAT credit.

Your office needs to take ISD  registration to enable itself to distribute CENVAT credit in respect of input service received by office to you factory which would be utilised against exise liability on ouput of your factory.