Input credit

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karunakara

Article Trainee

26 Points Posted on 08 March 2008

Dear all,

I am a manufacturer of both duty exempted and excisable goods ,

my marketing department receives services from many service providers ( for eg., Adv agency,man power outsourcing for selling, etc) and pays huge amount of service tax on its services ( cutrrently it is expensing it off),

now my concern is ,

1.can my marketing dept transfer all its service tax portion to mfg unit so that it can take credit on its excise duty liability,

2.If possible what are the documents to be maintained by mktg depty or the mfg unit to avail such credit.

please clarify onm this issue, it'll be a real value addiotion to my unit,

with regards,

karuna

Replies (2)

Guest

Posted on 12 March 2008

hii as per CE act 1944 if assessee is manufacturing excisable as well as non excisable / exempted goods, it is suggested that he should maintain records so he can conveince excise officer that input has been taken only for the goods used in excisable output. If u had taken credit of all input goods/ input services than u have to reverse the credit on input used otherwise than for excisable goods

Guest

Posted on 26 October 2008

Originally posted by :Guest
"	hii as per CE act 1944 if assessee is manufacturing excisable as well as non excisable / exempted goods, it is suggested that he should maintain records so he can conveince excise officer that input has been taken only for the goods used in excisable output. If u had taken credit of all input goods/ input services than u have to reverse the credit on input used otherwise than for excisable goods	"