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exice credit

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V.Jagannathan

manager

75 Points Posted on 09 October 2010

sir

we have registered work shop at chennai and we do fabrication work at chennai.The in input excise credit received through raw materials, tools and consumables are being adjusted against our out put excise payable.We are doing site work also.can we avail excise in put credit on above items, if they are purchased by us for different sites located in india and send to those sites under form JJ.In respect of site work, we raise labour invoice only with service tax.Kindly give your valuable reply which would help us to deal with the excise range inspectors, who are saying that credit on those items meant for stores not to be taken.

Jagannathan

Replies (1)

C.A. LINESH PATIL

910 Points Posted on 09 October 2010

Credit is available for input as well as capital goods.

the definition of input is "any material which is in or in relation to manufacture of goods is used whether directly or indirectly whether contain in final goods or not"

so in your case if you are using input for making any goods which is not excisable or dutiable goods then you cant take credit.

however there is no one to one co relation for taking credit.but input must be used for excisable dutiable goods.

but if you are using input for intermediate goods and that intermediate goods is exempt even then you may take credit for duty paid on inputs.