If a manufacturing co. pays servicetax on frieght inwards, whether this service tax can be used as cenvat credit or not while paying excise duty.
The co pays 25% ( i.e after abatement ) of service tax amount.
Pls resolve....
If a manufacturing co. pays servicetax on frieght inwards, whether this service tax can be used as cenvat credit or not while paying excise duty.
The co pays 25% ( i.e after abatement ) of service tax amount.
Pls resolve....
Yes the manuf co can take the credit of ST paid under RCM under Rule 9(1)(e) pf CCR,2004...provided the servicers could be established as input service as defined in Rule 2(l) of CCR,2004i.e the services are used directly or indirectly in relation to mfr of excisable goods or rendering of taxable services
Thanks
This means service receiver gets two benefit: 75% abatement & availment of cenvat credit.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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