Cenvat Credit
This query is : Resolved
11 January 2010
Respected Sir,
One of my clients have received a notice from Service Tax Department as regards to information on wrong availment of Cenvat Credit. In this notice following points are mentioned, which I feel are not appropriate:
1) If the bills do not contain PAN based ST Registration, the bill is not admissible for credit.
2) Personal mobile bills shows address of the company is not admissible if the name is of partner or director of the comapny.
3) If the PAN based number is rubber stamped instead of printed, such bill is not eligible for credit.
4) If the bill is addressed in the name of the branch of the company and the branch is not registered for input service, such invoice is also not eligible for credit.
My views/request on above is:
1)Is there any circular/notification of the department as regards to all of the above points. I have not read anywhere that credit will not be available if PAN based ST registration No. is not there. It only mentions that ST registration should be there. Now, if ST department issues temporary ST No. and if one takes credit for input service recd. from such service provider provider, what is wrong in it.
2) As regards to point 2 above, it is no where mentioned that bills should be in the name of the company. There is one circular which mentions that credit can be taken if the mobile is used for providing output service.
3) For point 3 above, there is nothing in the act or rules that ST reg No. should be printed on the invoice. It is mentioned that bills / invoices should contain the ST Reg no.
4) I agree with point 4 above, that branch should be registered with department in order to avail credit.
I request all to help me in this regards ASAP.
Thanks n Regards,
One of my clients have received a notice from Service Tax Department as regards to information on wrong availment of Cenvat Credit. In this notice following points are mentioned, which I feel are not appropriate:
1) If the bills do not contain PAN based ST Registration, the bill is not admissible for credit.
2) Personal mobile bills shows address of the company is not admissible if the name is of partner or director of the comapny.
3) If the PAN based number is rubber stamped instead of printed, such bill is not eligible for credit.
4) If the bill is addressed in the name of the branch of the company and the branch is not registered for input service, such invoice is also not eligible for credit.
My views/request on above is:
1)Is there any circular/notification of the department as regards to all of the above points. I have not read anywhere that credit will not be available if PAN based ST registration No. is not there. It only mentions that ST registration should be there. Now, if ST department issues temporary ST No. and if one takes credit for input service recd. from such service provider provider, what is wrong in it.
2) As regards to point 2 above, it is no where mentioned that bills should be in the name of the company. There is one circular which mentions that credit can be taken if the mobile is used for providing output service.
3) For point 3 above, there is nothing in the act or rules that ST reg No. should be printed on the invoice. It is mentioned that bills / invoices should contain the ST Reg no.
4) I agree with point 4 above, that branch should be registered with department in order to avail credit.
I request all to help me in this regards ASAP.
Thanks n Regards,
11 January 2010
My views:
First of all is there a letter recived or a show cause notice. Most probabaly it is a letter. You may in such case reply with justification:
1.The registration number can now be affixed along with the ST reg. certificate of the service provider can be provided.
2.The proof that the same is used by the company is important. Maybe a small portiuon can be excluded for personal calls.
3. ST number need no be printed by a copy of the registration certificate casn be provided as adequate proof.
4. Branches need not be registered for input credit. There is no such requirement. as an ISD the addresses of the branches are intimated at the intial stages and as branches added intimated further.
Credit not deniable for curable defects in documents. [ large number of cases under mOdvat confirm this view]
First of all is there a letter recived or a show cause notice. Most probabaly it is a letter. You may in such case reply with justification:
1.The registration number can now be affixed along with the ST reg. certificate of the service provider can be provided.
2.The proof that the same is used by the company is important. Maybe a small portiuon can be excluded for personal calls.
3. ST number need no be printed by a copy of the registration certificate casn be provided as adequate proof.
4. Branches need not be registered for input credit. There is no such requirement. as an ISD the addresses of the branches are intimated at the intial stages and as branches added intimated further.
Credit not deniable for curable defects in documents. [ large number of cases under mOdvat confirm this view]
11 January 2010
Respected Sir,
From your reply what I understood is:
1) If PAN based ST reg No. is rubber stamped then also one can take credit. It is not necessary that it should be printed only.
2) If PAN based ST Reg. No. is not there then also we can take credit.
3) From mobile bills 10-20% credit can be disallowed.
4) For branch office no need to register but to intimate with the department.
Sir, so department has asked for submission of bills. So, whether we should submit the bills or to reply with letter.
Thanks n regards,
From your reply what I understood is:
1) If PAN based ST reg No. is rubber stamped then also one can take credit. It is not necessary that it should be printed only.
2) If PAN based ST Reg. No. is not there then also we can take credit.
3) From mobile bills 10-20% credit can be disallowed.
4) For branch office no need to register but to intimate with the department.
Sir, so department has asked for submission of bills. So, whether we should submit the bills or to reply with letter.
Thanks n regards,
15 January 2010
Here I am agree with Mr. Madhukar.
1.The registration number can now be affixed along with the ST reg. certificate of the service provider can be provided.
Hand written ST no along with photo copy of ST Reg certificate is sufficient proof for credt availment.
2.The proof that the same is used by the company is important. May be a small portiuon can be excluded for personal calls.
here proportionate cderit can be availed if the payment of that bill is made directly from company accounts and use of phone are identifiable as personal use and company purpose.
3. same
4.If the company is registered with its corporate office and declared all its operational branches the at HO this credit can be availed.
1.The registration number can now be affixed along with the ST reg. certificate of the service provider can be provided.
Hand written ST no along with photo copy of ST Reg certificate is sufficient proof for credt availment.
2.The proof that the same is used by the company is important. May be a small portiuon can be excluded for personal calls.
here proportionate cderit can be availed if the payment of that bill is made directly from company accounts and use of phone are identifiable as personal use and company purpose.
3. same
4.If the company is registered with its corporate office and declared all its operational branches the at HO this credit can be availed.
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