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regarding cenvat

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We can use "service tax recoverable" for the payment of excise but Can we use service tax paid on telephone expenses for the payment of excise?

Replies (10)

Yes, you can use Input Service credit for Excise Duty payments, also you can avail service tax credit of telephone bills related to your factory. 

input is something which is used in relation to manufature.. so if  telephone  is used in relation to manufacture cenvat credit  can be taken

Any service is relating to your business you can avil the cenvat

Mr. Yogesh am afraid that u r wrong

suppose there are branches of manufacturing unit which does not manufacture but just do trading activity, the services in those units are not eligible for cenvat. even if those services are in relation to business unless they are in relation to manufacture they are not eligible

 

thanks for these information, but tell me how the cenvat is calculated as, XYZ manufactuing co. is paying service tax on GTA (Good transport Agency) on which he pay service tax only @ 25% of the receipt.  Can we take service tax credit in case of abatement/.

yes you can avail cenvat credit, of service tax paid on GTA , (only for Inward & upto depot / warehouse  freight,  you can't availed cenvat credit of Service tax paid on Outward freight ).

 

and what about service tax receivable that is paid by us for professional fee, telephone bill etc. can we take credit of these also.

yes you can avail credit of service tax on professional fees and  Telephone bills ( related to your factory)

Any Input service tax can be utilizied towards payment for excise liability.

 

input is something which is used in relation to manufature.. so if  telephone  is used in relation to manufacture cenvat credit  can be taken.


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