LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Query

DIVYA JASHNANI (ARTICLE ASSISTANT) (30 Points)

09 April 2012

HI!

i have a query that wen we purchase fixed assets and excise duty is payable on that purchase,

n there is to avail service tax benefit,wether we can get the benefit for the excise duty which is payable from that service tax or not?

n if service tax benefit is available then at what % and till how many years?

Reply
Follow
Share

12 Replies

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 09 April 2012

Your question seems confusing.. Could you elaborate???

Suguna (VP) (98 Points)
Replied 09 April 2012

if input services are involved in the purchase of fixed asset then the excise duty payable can be reduced by the amt of service tax paid on the input services for purchase of the fixed assets.

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 09 April 2012

Dear Suguna, If you buy the Fixed Assets then you will get the Credit for Excise duty Also when you buy the Service, you will get the credit for that service. Now, you have credit for both Excise and Service, then how would you set off the liability???

Suguna (VP) (98 Points)
Replied 09 April 2012

@ mihir doshi :agree , iam sorry i misunderstood it as sale .saw excise duty payable in the query and answered accordingly. if there is a purchase of fixed asset and it is used for output service like catering etc then set off can be made

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 09 April 2012

As long as you are not claiming any abatements under not .1/2006 or others where there is a restriction on avaiolment of credit ( such as 12/2003 where the material deduction is claimed) then you can claim the excise duty on inputs used in providing the service. Furtehr the capital goods used in providing the service would also be eligible for credit - 50% in the year of procurment and 50% in the subsequent years of use.

ROHIT AGARWAL (ROHIT) (21 Points)
Replied 10 April 2012

Under which head misc expditure is to be shown as per new schedule VI of companies act 1956 if it is been carry forward???

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 10 April 2012

Rohit,

Depend upon nature, the same can be shown under the head "Non Current Asset" or Current Asset". Guidance note to Revised Schecule VI doesnot speak about the treatment of the same but it speaks that Mis. Expenditure depend upon the nature can be shown in Non Current Asset" or Current Asset" head.

Relevant extract:

Revised Schedule VI is clear that additional line items can be added on the face or in the notes. Keeping this in view, entity can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current/ non-current assets”, depending on whether the amount will be amortized in the next 12 months or thereafter.

sumit (a) (30 Points)
Replied 12 April 2012

how to file service tax return online (what the proceidur) which documtn req for this

please tel me all proceidur

sumit (a) (30 Points)
Replied 12 April 2012

what is the service tax abetments

and any one can use it

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 12 April 2012

Dear Sumit, Abetment is service specific. Specify the nature of service.

NEHA31 (Business Manager) (64 Points)
Replied 13 April 2012

If we are purchasing a product for resale and we have to pay excise duty on that. NOW, Is this ED be used as CENVAT (INPUT) while calculating our SERVICE TAX LIABILITY?

This question is when we have SERVICE TAX No: but does not fall under ED slab so out of it.

PLs clarify..

neha

DIVYA JASHNANI (ARTICLE ASSISTANT) (30 Points)
Replied 11 December 2013

My question is that if we are calculating tax on total income... and there is a STCG on sale of fixed asset...and this sale is made from a block of fixed asset so i want to know that whether this capital gain is adjusted in the block or this capital gain will be deducted from total income while calculating total income...so that we can calculate tax on the total income... and if yes than why we will deduct so.. because capital gain is a part of total income????