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CENVAT Credit query

EXICSE (Legacy) 734 views 7 replies

If service provider company (shipping company providing point A to point B cargo transport service) buys goods (spares, capital goods etc) from non manufacturers i.e suppliers, so will this company eligible to avail CENVAT credit on excise duty paid by supplier?

 

And same with Transport Service obtained. The company pays Service Tax on behalf of Transport Service provided by Transporter, So will this Shipping company avail the CENVAT Credit of the ST paid by this co on behalf of Transporter.

Replies (7)

1) You can avail the duty on goods supplied by your suppliers only if they are registered First Stage or Second Stage dealers in terms of the CENVAT Credit Rules, 2004.. If they are ordinary traders, you are not eligible for the credit of any excise duty paid on those goods...

You can find that out by looking at the invoice issued by the suppliers.. The invoice will mention their Status...if it is a normal invoice then get the matter clarified with ur suppliers

2)Yes... you can take the credit of that ST paid after you have actually paid it... Its still an input service...its only that, now you are yourself paying it... Rule 3 allows such credit..

Thank you sir for your reply...

 

Can you tell me how to  check wether it is registered dealer or not?

Can some one reply to this please...?

ECC No. will be mention in Invoice then dealer will registered if ECC No not mention in Invoice then dealer not registered.

Thank you sir...

Can u tell me full form or ECC?

ECC means Excise Control Code.

Thank you sir


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