A taxpayer who is running a brick field. he purchased coal for making bricks. my query is -
1. can he claim compensation cess on purchase of coal because there is no cess on bricks.
2. so if he will claim the cess on purchase then he can not use that
cess for his outward supply and it will be collect in his credit ledger.
please guide he have to claim cess or not .
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Compensation cess on input
Replies (3)
1. Yes he can .
2. Yes correct.
yes he can claim ITC on cess.
2. Yes correct.
yes he can claim ITC on cess.
He manufactures and sales bricks but there is no cess on outward supplies of bricks then where he will utilize his cess amount which is he will claim.
cess input can be adjusted only against cess output. as in your case there is no cess output , so ultimately it will be your purchase cost & can be transfer to direct expenses
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