Dear All,
We r into mechanical construction, we had bought a cranne from china for our use, for that we had paid Customs Duty For rs 7671642, On which cvd is for rs 4031473, now my query is how much i can adjust on this year service tax.
Regards
Shyam
50% on capital goods in this year and 50 % in next year
| Originally posted by :shyam | ||
| " | Dear All, We r into mechanical construction, we had bought a cranne from china for our use, for that we had paid Customs Duty For rs 7671642, On which cvd is for rs 4031473, now my query is how much i can adjust on this year service tax. Regards Shyam |
" |
Dear Shyam,
It is presumed that the crane imported by you is NOT going to be used exclusivley for providing exempted services. It would be used partially for taxable services.
If so then the credit available this year is 50% of the CVD about 20 Lakhs+ and the balance can be availed on 1.4.2009 as long as the crane has been put to use. It maybe ensured that the value of the crane for depreciation does not contain the duty crewdits availed i.e. 43 lakhs.
Warm Regards
CAclubindia
