Service tax input credit

572 views 1 replies

Hi,

 

 

We are the trading and contracting firm dealing in interior decorators. We supply and install the flooring, false ceiling and glass partition systems based on the work order from the main contractor or directly from the clients.
 
In the process, we purchase toughened glass from the vendors. They give us excise invoice charging excise duty on the purchase of glass. Are we eligible to claim excise duty benefit to the extent of service tax rate i.e., 12.36% and claim against the output service tax payable. 
 
For your information, we are registered as service provider under service tax act and charging service tax on the installation (service)  portion to the clients.
 
We are not registered under Excise duty act.  
 
Please clarify.
Replies (1)

As per Rule 4 of CCR, 2004, A service provider can avail CENVAT credit on inputs upon receipt of inputs in the premises of the provider of output service.

Accordingly, you can avail excise credit on the goods used for providing output service

 

Natesh

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