Hi Experts,
I know that a Manufacturer can set off input tax credit against excise payable but my question is when I am buying the excisable Godds and thereby paying Excise Duty, Cam I claim my input service tax credit against that Excise duty.
Awaiting for early reply, Thanks in advance.
Swarup.
Dear Swarup
Yes, You can take Input Credit of Service Tax against Excise duty paid.
As per Rule 3(4) of Cenvat Credit Rules, 2004, Cenvat credit can be used against the payment of excise duty.
Cenvat credit can be utilized as per procedure given under Rule 3(1) of Cenvat Credit Rules, 2004.
You can avail CENVAT credit on inputs as soon as you receive them in the factory. Thus,it's not necessary to pay duty before availing CENVAT credit on inputs.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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