Celebrate CA Day with CAclubindia PRO. Use Code: CADAY10 Subscribe Now!

SSI UNIT CAN AVAIL SERVICE TAX CREDIT ON INPUTS

koti (SR Accountant) (27 Points)

29 June 2009

dear sir,

we have a SSI Unit upto 1.50 crore Excise exemption.and we have service tax registration also for business axulary services.we raised a jobwork bill and collect service tax amount.after realisation of that bill we are payable to service tax department. we can avail input credit on service tax.

some body said after exceeds 1.5 crore of turnour input credit on service will avail below the limit it is not possible.please solve our problum

Reply
Follow
Share

20 Replies

Madhukar N Hiregange (Chartered Accountant) (39039 Points)
Replied 29 June 2009

Capital goods used for provding taxable services - credit is available in full- upto 50% in the year of receipt and balance in subsequent years.

Inputs used for provding taxable services central excise duty credits available in full. However no credit on inputs used for exempted goods ( upto Rs.150 lakhs)

Input services Credit (ISC)used exclusivley for taxable services available in full; ISC for exempted goods - 0%; common services - 16 specified in Rule 6 (5) - available 100%. Others proportinate as set out in Rule 6 (3). [ if not significant this need not be calcuated]

1 Like

Chintan Vasa (CA Final Student M.Com) (1241 Points)
Replied 29 June 2009

CENVAT credit can be availed if the benefit of the exemption is not taken. It doesnt matter whether t/o exceeds 1.5 crore or not. However for availing such input credit excise will have to be paid on the product manufactured though the t/o is below 1.5 crore.

Madhukar N Hiregange (Chartered Accountant) (39039 Points)
Replied 01 July 2009

The possibility of central excise duty being exempt under Not.8/2003 upto Rs.150 Lakhs along with service tax payable after exemption of Rs 10 Lakhs exists and can happen./

Once taxable services provided the possibility of credits as mentine in the earlier reply would in our view be available.

jayesh patel (accounant) (36 Points)
Replied 13 August 2009

dear sir,

some body said after exceeds 1.5 crore of turnour input credit on service will avail below the limit it is not possible.please solve our problum

Satish (CA Final Student) (479 Points)
Replied 14 August 2009

Mr. Jayesh

You can avail the credit of service tax on services exclusively used as input for providing output services. As regards excise duty on inputs & capital good used for manufacturing, you can avail the credit only after you start paying excise duty.

jayesh patel (accounant) (36 Points)
Replied 14 August 2009

dear sir,

we purchase raw material from china, which doucument is requier for modvat taken

Satish (CA Final Student) (479 Points)
Replied 14 August 2009

Dear Mr. Jayesh,

Bill of Entry is must for availing CENVAT credit on imported materials input.

AMIT (STUDENT) (43 Points)
Replied 19 August 2009

yes you can avail the credit. in this situation you have nothing to do with the 1.5 cr limit of Excise.

jayesh patel (accounant) (36 Points)
Replied 12 October 2009

Bill of Entry is must for availing CENVAT credit on imported materials input, but i want ask avail customs duty also as a cenvat credit ...

jayesh patel (accounant) (36 Points)
Replied 21 October 2009

Bill of Entry is must for availing CENVAT credit on imported materials input, but i want ask avail customs duty also as a cenvat credit

T.S.CHANDRASEKARAN (CHARTERED ACCOUNTANT) (60 Points)
Replied 21 October 2009

Originally posted by :jayesh patel

Bill of Entry is must for availing CENVAT credit on imported materials input, but i want ask avail customs duty also as a cenvat credit

You can avail Cenvat credit+additional duty+ed cess+she on excise duty only.

No Customs Duty credit is available.

If you are exporting goods and you are importing materials for manufacturing goods for export then there is no Customs duty if you obtain DEEC license from DGFT. However Excise duty is charged by customs in such cases which can be used as CENVAT credit.

jayesh patel (accounant) (36 Points)
Replied 22 October 2009

dear sir,

we r manufacturing unit . received input material from china ,i have bill of entery paper ther r excise duty + custom duty , we r not exporting material .. so i want to ask that if i avail custom duty also as a cenvat credit

T.S.CHANDRASEKARAN (CHARTERED ACCOUNTANT) (60 Points)
Replied 27 October 2009

Originally posted by :jayesh patel

dear sir,
we r manufacturing unit . received input material from china ,i have bill of entery paper ther r excise duty + custom duty , we r not exporting material .. so i want to ask that if i avail custom duty also as a cenvat credit

CENVAT CREDIT OF CUSTOMS DUTY CANNOT BE AVAILED