Credit of Service Tax

Dear All,

I would like to to know opinion of all service tax experts, whether one can avail service tax credit if one is not a service provider but a manufacturer? There is lots of confusion in the matter and experts have different opinions. 

Opinions of all individuals are very important. Please respond.

Thanking you in anticipation

Best Regards,

S. M. Desai

Replies (5)

Manufacturer can register in service tax as goods transport agency. after registration you can take cenvat credit of service tax and setoff with Excise libility.

Originally posted by :S. M. Desai
" Dear All,
I would like to to know opinion of all service tax experts, whether one can avail service tax credit if one is not a service provider but a manufacturer? There is lots of confusion in the matter and experts have different opinions. 
Opinions of all individuals are very important. Please respond.
Thanking you in anticipation
Best Regards,
S. M. Desai
"


 

Dear Sir,

There is no any confusion from your query.

Being a manufacturer of final products, can take cenvat credit on input services (service tax credit) and the same can be utilized to discharge the excise duty on clearance of his final product, even though he is not a service provider. 

Rule 3(1) and 3(4) of CENVAT credit Rules 2004 support the above.

 

The ST credit to pay the central excise duty and the central excise credit for payment of serrvice tax subject to other conditions has been enabled from 10.9.2004.

 

    

 

yes u can  avail the credit of input services used in or in relation to manufacture of final product

Dear Desai

yes you can take credit and utilise against service tax and excise payment which is charge to costumer in your bill.where are confuse you are also as consultant and for more knowledge watch the service tax website www.servicetax.gov.in

thanks

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