28 June 2012
My client is dealing in laundry and drycleaning and they charge service tax from the customer but they pay excise duty on some raw materials like chemicals etc.
can they take credit of excise duty while paying service tax monthly.
28 June 2012
Under cross utilization of Service tax and Excise, in my opinion, your client can claim and take credit of excise duty portion while discharging his output tax.
The condition for availing any CENVAT benefit for service tax output: The product/input services should be used in relation to providing output service. If chemicals are used in dry cleaning and if your client is paying the service tax on such services, he can claim it.
CAclubindia
