additional duty levy able u/s 3(5)

This query is : Resolved 

15 March 2010 Why additional duty levy able u/s 3(5) of custom tariff Act cannot used for payment of services tax on any output services.

31 March 2010 hello dharmbeer, service provider cannot claim cenvat credit of 3(5) because it is in lieu of VAT. it is charged at the rate of 4% for VAT element and VAT i.e. sales tax cannot be adjusted against service tax. in case of further doubt you can revert back to me. regards, CA Shakuntala Chhangani



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