Entitlement for credit for input service tax paid

1139 views 2 replies

We are having a manufacturing unit set up in exemption zone ( Uttrakhand ), and have exercised an option not to charge central excise duty on our finished output ( under notification no. 50/2003. We are also not taking CENVAT on input material purchased.

Besides we are also providing services for design ( Business Auxiliary), and charging service tax in our invoices for the same. Can we take input credit of service tax paid by us on services availed such as Security Charges, etc. or the same has to be divided proportionately.

Replies (2)

Rule 6 of cenvat credit rules 2004 will apply. U have to maintain seprate books. if not maintain than two options. One of them is monthly credit needs to be reversedc based on value. For example sale is made of Rs.1000 and service provided is of Rs.500. Total credit availed is of Rs.100. u need to reversed Rs.33.33 credit. Every month thismethod to follow. At the year end final duty calculate based on yearly figurs of sales and service

In addition to the above 3rd option is to pay upto 5% exempted services... i would suggest you either choose the 1st or 2nd option...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details