15 February 2016
I want to know wheather a Service Provider can avail cenvat credit on CST Purchase @ 2% which is used for our input. For exp : we provide service on Supply on Tangible Goods :- Machinary Parts Purchase Value : 2,95,352.50 Add Cenvat @ 12.5% : 36,919.00 Sub Total : 3,32,271.56 Add CST @ 2% : 6,645.33 Grand Total : 3,38,917.00
20 February 2016
Under the CENVAT Credit Rules - CENVAT input comprises of Central Excise, Service Tax, CVD component of Customs Duty paid - and the input so availed can be used for paying off Central Excise and Service Tax liabilites payable by the assessee.
Hence it is not possible claim CST payments on purchases made as CENVAT Input Credit.