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Cenvat credit transfer

Queries 666 views 2 replies

shailesh khandelwal

Service

39 Points Joined June 2008

Dear Sir

My query is regarding transfer of excise credit to for payment of service tax.

We have two units registered under Excise & Service Tax. We have cenvat credit available in excise in unit 1 and we are providing output services from Unit 2.

So Can we transfer excise credit from unit 1 to service tax payable in unit 2.

If yes under which rule & documentation.

Replies (2)

If inputs of unit 1 are used in unit 2 fir providing service remove the inputs under invoice reverse the cenvat taken and tranafer tge inputs to unit which will then be able to take credit on inviive of unit 1

Rahul Krishnan

44 Points Joined September 2008

The transferability is based on clients status. If your client is large tax payer you can transfer credit by issuing transfer challan, if not there is no provision to transfer credit from one unit to another. Please refer rule 12 of cenvat credit rules for large tax payer.