Payment of cess in case of GTA BY ACCOUNT CURRENT

A learner (Corporate Accounts ) (345 Points)

08 January 2010  

 in GTA cases due to reverse charge co. pays service tax and cess thereon in CASH always. WITh service tax i am okay...but i think a co. can pay thru input the cess payable on service tax( EXPLANATION TO Rule 3(7) CCR)
. i dont think there is an compulsion to pay the cess part in cash form... i.e 3% can be paid thru account. Correct me if i am wrong
 

RULES READ AS FOLLOWS

 

 

 

 

 

 

(7) Notwithstanding anything contained in sub-rule (1) and sub-rule (4), -

(a) CENVAT credit in respect of inputs or capital goods produced or manufactured, by a hundred

per cent. export-oriented undertaking or by a unit in an Electronic Hardware Technology Park or

in a Software Technology Park other than a unit which pays excise duty levied under section 3 of

the Excise Act read with serial numbers 3,5, 6 and 7 of notification No. 23/2003-Central Excise,

dated the 31st March, 2003, [G.S.R. 266(E), dated the 31st March, 2003] and used in the

manufacture of the final products or in providing an output service, in any other place in India, in

case the unit pays excise duty under section 3 of the Excise Act read with serial number 2 of the

notification No. 23/2003-Central Excise, dated the 31st March, 2003, [G.S.R. 266(E), dated the

31st March, 2003], shall be admissible equivalent to the amount calculated in the following

manner, namely:-

Fifty per cent. of [X multiplied by {(1+BCD/100) multiplied by (CVD/100)}], where BCD and CVD

denote ad valorem rates, in per cent., of basic customs duty and additional duty of customs

leviable on the inputs or the capital goods respectively and X denotes the assessable value.

(b) CENVAT credit in respect of -

(i) the additional duty of excise leviable under section 3 of the Additional Duties of Excise

(Textiles

and Textile Articles) Act, 1978 (40 of 1978);

(ii) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14

of

2001);

(iii) the education cess on excisable goods leviable under section 91 read with section 93 of the

Finance (No.2) Act, 2004 (23 of 2004);

(iv) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of

excise specified under items (i), (ii) and (iii) above;

(v) the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003);

(vi) the education cess on taxable services leviable under section 91 read with section 95 of the

Finance (No.2) Act, 2004 (23 of 2004); and

(vii) the additional duty of excise leviable under clause 85 of the Finance Bill, 2005, the clause

which has, by virtue of the declaration made in the said Finance Bill under the Provisional

Collection of

Taxes Act, 1931, the force of law,

shall be utilized only towards payment of duty of excise or as the case may be, of service tax

leviable under the said Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 or the

National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of

2001), or the education cess on excisable goods leviable under section 91 read with section 93 of

the Finance (No.2) Act, 2004, additional duty of excise leviable under section 157 of the Finance

Act, 2003, or the education cess on taxable services leviable under section 91 read with section

95 of the said Finance (No.2) Act, 2004, or the additional duty of excise leviable under clause 85

of the Finance Bill, 2005, the clause which has, by virtue of the declaration made in the said

Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law,

respectively,

on any final products manufactured by the manufacturer or for payment of such duty on inputs

themselves, if such inputs are removed as such or after being partially processed or on any

output service:

Provided that the credit of the education cess on excisable goods and education cess on taxable

services can be utilised, either for payment of the education cess on excisable goods or for the

payment of the education cess on taxable services.

Explanation.-For the removal of doubts, it is hereby declared that the credit of the additional duty

of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special

Importance) Act, 1957 (58 of 1957) paid on or after the 1st day of April, 2000, may be utilised

towards payment of duty of excise leviable under the First Schedule or the Second Schedule to

the Excise Tariff Act.

(c) the CENVAT credit, in respect of additional duty leviable under section 3 of the Customs Tariff

Act, paid on marble slabs or tiles falling under sub-heading No. 2504.21 or 2504.31 respectively

of the First Schedule to the Excise Tariff Act shall be allowed to the extent of thirty rupees per

square meter;

Explanation.- Where the provisions of any other rule or notification provide for grant of whole or

part exemption on condition of non-availability of credit of duty paid on any input or capital goods,

or of service tax paid on input service, the provisions of such other rule or notification shall prevail

over the provisions of these rules.

4. Conditions for allowing CENVAT credit.- (1) The CENVAT