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Service Tax Credit

Queries 551 views 3 replies

We are manufactrers of Engg equipments, registered with central excise department and also we service providers of Errection commissioning of our manufactured equipments.  We will give the service contract to our job worker to complete the erection activity at site, for which venor will charge on us service tax.  This credit we are transfering to our manufacturing unit thorugh our service distributor licence, same credit we using in clearing of our manufacture goods under central excise duty.  Kindly suggest us.  whether we eligible or not, if not what to do already transfered.

Ramesh

Replies (3)

if service invoice in your name then you can take service tax cenvat credit. 

The erection installation contract wouldbe in your name as you have stated that vendor bills you ST. The same wouldbe available tobe set off against either your ST liability or your excise liability. You can transfer the same through the ISD route.

Assumed that you charge separately for erection installation besides value of goods supplied that suffers excise duty. As long as the subcontractors service is input service in your hands, the same qualifies for cenvat credit. The credit can be utilised for payment of excise duty or service tax.


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