Canc excise cenvat avail against payment of service tax

This query is : Resolved

Harshad (Querist)
Follow

21 February 2015 We Are Service Provider liable to Pay Service Tax.

We are Purchasing Excise Paid Materials to use in providing Taxable services.

In above purchase some are for Raw Materials and some are for Capital Equipment.

Can we take CENVAT of Excise Against Payment of Service Tax?

Shall we take CENVAT credit for Equipment 100 % in single year? or 50 + 50 in current & Next year?

CA Alexandar Gazi

CA Alexandar Gazi (Expert)
Follow

22 February 2015 Yes, you can avail CENVAT credit of excise duty and utilise the same against payment of service tax

Yes, you can also avail CENVAT credit of excise duty paid on purchasing equipment and can utilise against payment of service tax.

Regarding equipment you can avail upto 50% CENVAT credit in the first year and rest in the subsequent year.