Cenvat credit for custome duty

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 we are in manufacturing business. have imported a machine on which we have paid custom duty. can u please tell us whether we can avail this as cenvat credit for service tax

RENGARAJ R.K

RENGARAJ R.K (Expert)
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23 July 2013 Now availing cenvat credit is common for both excise and service tax. Customs duty is an eligible cenvat as per the cenvat rules. So, if the machine imported is meant for providing output service, then it can be availed as capital goods. Hope you know the rules of % eligible for cenvat credit on capital goods first year, second year etc.,

Any how, intimate your availment of capital goods to the excise/service tax superintendent by letter duly acknowledged.

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 Thank You Very Much Mr. Rangraj for the quick reply. However, can u pl elaborate based on the following equation what can be availed as CENVAT CREDIT?

BCD Rs. 417043
CVD Rs. 708714
CUSTOM EDU. CESS Rs. 22420
ADDL DUTY(IMPORTS) Rs. 265332
SH CUSTOM EDU CESS Rs. 11208.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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24 July 2013 Types of Duties for CENVAT Credit availment
Rule 3(1) allows a provider of taxable service to take credit (referred to as CENVAT) of
1) The duty of excise specified in the First Schedule to the Excise Tariff Act, (commonly known as BED); (incurred when purchasing from the manufacturer / registered dealer who provide valid document for credit)
2) The duty of excise specified in the Second Schedule to the Excise Tariff Act, (commonly known as SED);
3) The additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act,1978 (commonly known as AED(TTA));
4) The additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (commonly known as AED(GSI));
5) The National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (commonly known as NCCD);
6) The Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004;
7) The additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified above in above clauses; (also called CVD, which is paid when goods imported. This will also include the additional CVD paid @ 4%)
8) The additional duty of excise leviable under section 157 of the Finance Act, 2003;
9) The Service Tax leviable under section 66 of the Finance Act; and

10) The Education Cess on taxable services leviable under section 91 read with section 95 of the Finance (No.2) Act, 2004;

Please refer serial no.7 in the above list for your query, i.e eligibe for cenvat for service tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2013 Dear Mr. Rangaraj,

Thanks a lot.

Your explanation has helped us a lot. I am sure many more people will be benefited by your views.