Cenvat credit

This query is : Resolved

shyam (Querist)
Follow

20 May 2013 My client purchases stock of spairs form honda company for which excise duty paid to honda company on purchase of spair parts. my client is honda dealer. client main business is trading of vehicles. he also provides service to vehicle and spair parts will be used in service of vehicles. while billing to customer parts used in service VAT amount is billed and service tax on services is also billed. here on spare parts purchased excise duty paid can be taken as cenvat credit since spairs are used in service of vehicles

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

20 May 2013 The repair activity is a works contract and ST is ONLY paid on service tax part [ not on goods]. Therefore the CED paid on parts cannot be availed.

shyam

shyam (Querist)
Follow

20 May 2013 Thanks for replay sir ,

since parts used in service of vehicles and excise duty can be set off with output service tax ? is it correct or wrong?

Upgrade to CAclubindia Pro. Subscribe Now!