Credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2012 can i utilisation of cenvat credit ag. service tax on taxable output service under cenvat credit rule 3(4)?
please give circular or notification for above.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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18 February 2012 NO NEED OF CIRCULAR, SECTION ITSELF SPEAKS
(4) The CENVAT credit may be utilized for payment of –

(a) any duty of excise on any final product; or

(b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or

(c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or

(d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or

(e) service tax on any output service:

Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or quarter, as the case may be, for payment of duty or tax relating to that month or the quarter, as the case may be