Cenvat with service tax

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ABHISHEK

Student

412 Points Joined November 2011

HOW TO SET OFF CENVAT WITH SERVICE TAX

MY CENVAT BALANCE 50000

SERVICE TAX LIAB 19773

ADD (2+1) ON ST 593

I CAN ADJUST CENVAT TOWARD 19773 OR 19773+593

Replies (2)

From the query posted, it appears that the unit wants to discharge the service tax liability through debits from the cenvat account. In such a case, credit of service tax can be utilised for payment of service tax on the output service and similarly the credit of EC ( 2% ) if any available with you then the same can be utilised towards the education cess of the output service and similar is the case with secondary and higher education cess.

CA ANKUSH AGGARWAL

CHARTERED ACCOUNTANT

2782 Points Joined July 2009

Originally posted by : C.V.R.SARMA
	From the query posted, it appears that the unit wants to discharge the service tax liability through debits from the cenvat account. In such a case, credit of service tax can be utilised for payment of service tax on the output service and similarly the credit of EC ( 2% ) if any available with you then the same can be utilised towards the education cess of the output service and similar is the case with secondary and higher education cess.