Set-off in excise duty from the service tax (input) paid.

Queries 1561 views 4 replies

K.Sanu Bhagat

Accounts Enthusiast

122 Points Joined June 2012

A proprietorship manufacturer had to pay Freight Inward (Supplier to factory) and Freight Outward (Factory to Dealers/Customers). Service Tax & Excise Tax registration numbers have been taken.

Now, suppose Freight inward = 50,000 Freight Outward = 1,50,000

Which of the two will be considered for Input Service Tax? Where will it be Set-off against? If service tax on both the Freight Inward/Outward is paid as total after availing abatement of 75% on total freight, how much amount will be settled through availment of CENVAT Credit in payment of Excise Duty and under what heads?

I will be really grateful to all the repliers.Thank you.

Replies (4)

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

We are given here to some e.g. for your convenient i.e

Rs. 10000 Inward freight

Rs. 8000 Outward freight

Total Amt. 18000 to be paid service tax thereon

18000 of 25% = 4500 (service tax on 12.36%) = 556.20

You can be taken credit as Cenvat credit only Rs. 10000 of 25% = 2500 of 12.36% = 309.

Further in this regard you are eligible for taken Cenvat Cr. Rs. 309.00 only and utilized same in Service Tax and Excise for duty paying.

If you having any queries would be raised in this regard plz forward the same.

K.Sanu Bhagat

Accounts Enthusiast

122 Points Joined June 2012

Thank you so much Sir.

One more thing, if i have paid S.Tax on both Inward & Outward Freight and now i have to set-off the Input Service Tax with Output Excise Duty.

Where should i mention this set-off in the return of Service Tax and Excise Duty?

Replies highly appreciated.

Thank you.

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

You can to be taken cr. only Inward and same utilized in discharge of duty in Service Tax/Excise and shown in ST-3 in Cenvat column. Plz examine the ST-3 Cenvat column and fill the same information.