service tax set off against cenvat credit availed on CG

Service Tax (Legacy) 1836 views 2 replies

We are one of the manufacturers of MS Angles, Channels, TMT bars, Transmission Towers, Communication Towers and Service providers for Erection & commissioning, Civil Construction for Commercial Buildings etc. We are Turnkey Solution Providers to transmission and communication industries

The services, which we are providing, are indirectly related to our supplies of transmission and communication towers.

We have huge credit availed on inputs and capital goods related to manufacture of excisable goods. The inputs and capital goods are not directly related to the output service.

Shall we utilize the above credit towards set off against payment of Service Tax?

Please clarify, as it involves huge amount of service tax payment.

Replies (2)
Originally posted by : Jagdeeswara Rao


We are one of the manufacturers of MS Angles, Channels, TMT bars, Transmission Towers, Communication Towers and Service providers for Erection & commissioning, Civil Construction for Commercial Buildings etc. We are Turnkey Solution Providers to transmission and communication industries

The services, which we are providing, are indirectly related to our supplies of transmission and communication towers.

We have huge credit availed on inputs and capital goods related to manufacture of excisable goods. The inputs and capital goods are not directly related to the output service.

Shall we utilize the above credit towards set off against payment of Service Tax?

Please clarify, as it involves huge amount of service tax payment.

Dear Sir,

One question which comes is why there is an accumulation?

The excise duty accumulated can certainly be used for the discharge of ST as there is no restriction. As long as the credits are eligible availing is allowed.

Once availed the usage canbe for CED or ST.

 

thank you sir


CCI Pro

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