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Procedure for CENVAT Rules

Service Tax (Legacy) 2333 views 1 replies
Hi everybody

Our company providing the recruitment services.Since incorporation ie from 2003 we are paying service tax on time ie 05th of the month . we were not taking any setoff on the input services till now.

Now from Oct 2006 onwards we are deciding to apply CENVAT credit rules.

So please tell me the procedure for applying the CENVAT Credit and how to take set off
and also tell me whether  the service tax paid on the expenses ie Mobile bill and telephone bills and intenet subscribtions etc will be allowed to take set off. We have registered for " Online Data and Information " category.

Whether any seperate records to be maintain or books.

Thanks
Vishwajeet
Replies (1)
Dear friend,

1) You can avail  CENVAT credit on input  services - i.e. service tax paid on input services.

2) You can avail it  for last  one year , I do not understand, why you want to wait  till oct,2006.

3) For Procedure for CENVAT, please go through SHRI DATEY'S READY-RECKONER,which is  easily available at all bookstalls at a very resonable prices.

4) The definition of INPUT CREDIT is very vast. You will be able to cliam cenvet credit on various input services connected to your business.

5) As regards, cenvat credit on MOBILE BILLS, earlier it was denied on one or the other ground.However, it is held recently  that, it should be allowed. Hence, please avail the same after discussion with your range supritendent.

6) Please note that, you will be eligible for CENVAT CREDIT on INPUT SERVECES, only after PAYMENT TO  the INPUT SERVICE SUPPLIERS. (i.e. IF YOU DO NOT PAY THE INPUT SERVICE BILLS FOR EVER THEN,YOU WILL BE NOT ELIGIBLE FOR CENVAT CREDIT FOR EVER..) .in otherwords, first pay the bill and then avail the CENVAT CREDIT.

Thanks &  Regards,

MANJUANH

m.chanageri @ yahoo.com


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