cenvat credit availability for the paymant of service tax

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vamsi (Querist)
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24 October 2009 can anybody tell me that one of my client purchases capital goods and pays excise duty on that.he also pays service tax which he renders service,what percentage of exise duty he can claim as duduction while paying service tax.

thanks and reg.
vamsi

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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25 October 2009 From the Cenvat Credit Rules, 2004, first checkout whether the capital goods purchased by your client qualifies as Capital Goods for his output service.

If it qualifies, then, 50% of the total available credit of the C.E duty paid on the CG would be admissible for credit in the first year and the rest 50% in the subsequent year.