Availibilty of cenvat credit of cvd

This query is : Resolved

CA Ritesh Jaiswal (Querist)
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01 February 2012 Dear all,

My company is service provider. We are paying CVD on goods imported. My Query is that whether cenvat credit OF CVD is available to us against service tax? if Yes then
(1)under what conditions? and
(2) what are cenvatable documents/records required to be kept?

PLease reply as early as possible.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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02 February 2012 Distribution of input service credit [ (Rule 4A (2) ] :-

It is also now possible to distribute input credit of service tax though bills of input service is received at H.O. or a centralized office though no taxable service is rendered from such office. It will also be possible to accumulate the credit available at different regions / branches etc at such centralized office and distribute the same to the desired regions & branches through medium of invoices issued by such control office termed as “input service distributor”

The invoice, bill or challan issued by input service distributor should be serially numbered and contain the following particulars:-

6.1

the name, address & registration number of the person providing input services and serial number and date of invoice, bill or as the case may be, challan issued under sub-rule(1).
6.2
the name, address and the registration number of the said input service distributor;
6.3
the name & address of the recipient of the credit distributed;
6.4
the amount of the credit distributed.
6.5
The input credit distributor should :

(i) take reasonable steps to satisfy himself about identity and address of provider of input service
(ii) submit half yearly return within a month from close of the half year in prescribed form. (Rule 7):-
(iii) the credit distributed against a document referred to in Rule 9 does not exceed the amount of service tax paid thereon; or
(iv) credit of service tax attributable to service used in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed.
6.6
Penalty for not taking reasonable steps and availing credit of duty on input would be the duty amount or Rs.10000/- whichever is higher (Rule 13 (1) ).
6.7
From the requirements if is appearant that the input service distributor is also required to take registration, through there is no specific provision in law.

for more info:

http://www.servicetax4india.com/ServiceTax-credit-Rules-new.asp