Hi,
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.
If output services are provided to a unit in SEZ or Developer of SEZ, where service tax is exempted. Are we eligible to claim cenvat credit on inputs fully or pro rata to the extent of taxable services provided to Non-Sez unit. Pl clarify.
Though Rule 6 of the Cenvat Credit Rules prohibits taking of credit if final product or output seervice is exempted but it has certain exceptions in Rule 6(6) and supply to SEZ is one of the exception.So, Cenvat Credit is available for the input services if the Output Services are provided to the SEZ.
Thanks a lot for your reply !!
Shyam S Gupta and Company
New Delhi
CA Inter
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Fytomax Nutrition Private Limited
Aurangabad
CA Inter
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CCI
Pro
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