please advise

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dear all,

please advise me .....i have a public weighbridge (used to weigh trucks,auto etc for which the customers pay us fee ) i am buying a new high capacity weighbridge on which i have to pay     excise duty @ 8.24% ,VAT @ 12.5%  entry tax @ 1%please tell me is there any provision under excise /vat rules which gives rebate in the tax rate or any tax credit like cenvat credit to my firm ....................my firm is based in mp(madhyapradesh)..............the weighbridge factory / head office is in another state(their branch office is in mp)...........kindly reply......thank you

Replies (2)

Dear rajiv,

Cenvat Credit is available only in case where an product is manufcatureed and sold or any output service is provided. In other words credit is available where any duty on output is paid or service tax is paid on output services.

  In your case you are not manufacturing any product. You charge fee from your customers which goes to show that you are providing certain service to your customers. Now the question comes that whether your service is taxable under service tax laws or not. If the answer is yes then is your turnover is more than Rs 10 lacs per annum. in that case machinery / equipment i.e wheighmachine shall be considered as capital good for you and what ever duty has been paid by you on it would be vailable as CENVAT credit. Note that in the above situation you will have to pay the Service Tax.   

Regards

There appears to be no exemption to my knowledge for you in this case.

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