input credit service tax...

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Prachi Jindal

CA-Article-Final-Student

129 Points Joined May 2010

Hello everybody...plz tell....

if a manufacturer has paid service tax on the services that he availed during production period...will he be entiteld to have credit available to set excise paid on output...and viceversa...!! means is this same apply for a person who paid excise at the time of purchase of the product that he is using for providing services...will he be entitled to excise input...??? what in the case of if CST paid in both cases....!! means Is CST credit is available to set service tax paid and viceversa...?? plz tell...its urgent.

Thanks in advance.

Replies (3)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

Originally posted by : Prachi Jindal

Hello everybody...plz tell....

if a manufacturer has paid service tax on the services that he availed during production period...will he be entiteld to have credit available to set excise paid on output...and viceversa...!! means is this same apply for a person who paid excise at the time of purchase of the product that he is using for providing services...will he be entitled to excise input...??? what in the case of if CST paid in both cases....!! means Is CST credit is available to set service tax paid and viceversa...?? plz tell...its urgent.

Pl see the defintion of input services in the Cenavt credit rules and also the utilisation. Eligible input services can be aviled and utlised for the payment of either CE or ST>

CST credits are not available for set off at all. VAT credits available for set off aaginst VAT/ CST.

Thanks in advance.

Jeevesh Mehta

Advocate- Corporate Commercial & Indire

861 Points Joined February 2009

Dear Prachi,

You refer to CENVAT Credit Rules, 2004 to get answer to your doubts.

there is no connection between service tax pid and CST paid as CENVAT Rules do not cover the CST /VAT. CST/ VAT Credit is totallly a differebt concept applicable at the time of SALE of Goods. Excise and Service TAX is on Production of goods / providing output service.

Regards

Ph:9811617186

Prachi Jindal

CA-Article-Final-Student

129 Points Joined May 2010

Thanks a lot...m trying to get the real extract of wht u all said...meas in short excise duty - service tax & service tax - excise duty (credit available) but not in the case of CST....rit..got it thanks once again...:)