VAT setof against Excise/Service Tax

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Hi Friends,

I have a query as to can we claim set off input VAT against Excise Duty/ Service Tax liability? IF yes, which section under MAVT Act or Excise Act provides for the same? Is this a new amendment or what???

Waiting for reply......

Replies (7)

hi

Cenvat credit of inputs and input services is available only for excise duty, service tax and customs. Cenvat credit can not be claimed for local taxes.

Hence, input VAT can be set off against output VAT only.

bye

take care

The Input Credit of VAT can be allowed only against Output VAT payable.

The set off Credit is not allowed against Excise Duty, Customs Duty , CST , Output Service Tax.

No Dear. You cannot set off VAT input/output with Excise or Service tax Credit/ Liability.

Both of them are levied under different laws and have different basis of levy.

Nikunj Rathi

Good Evng, should we collect both VAT and Service Tax on Annual Maintenance Contract. 

 

Jaikeshen

my id is jaikeshen @ gmail.com

Sevice tax and VAT on services and sales respectively are applicable on AMC

Dear Mr.Agarwalla,

Thanks for your inputs, great ful if you could let me know the notification, because if I charge Vat, our clients will asks for notification.

 

pl. provide

thanks & regards

Jaikeshen

Jaikeshen @ gmail.com

 

No notification is required. All the states after 46th amendmend in Constitution have been entitled to collect sales taxes on transfer of property in goods in execution of works contracts.

Normally. in AMC spares and consumables are supplied by the contrcators to the contractees and that is the point when VAT is attracted. If no transfer of property is made (charged separately for replcaemnts of spares & consumables), no VAT will be attracted on AMC.

You may refer sections relating to works contract in your local VAT Laes.


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