Cenvat credit on "duty paid" on fg produced and capitalized

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Harsha (Querist)
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15 December 2015 Dear Sir/ Ma'am,

A company manufactures machines which is been sold to customers as well as rented, When the machine is sold duty is being collected, also when rented duty is paid, and when machine is rented the same machine is capitalized, my query is can they utilise this duty. Can they transfer this duty payment on rental machines to RG23C

Thank you

Arun Kumar Singh

Arun Kumar Singh (Expert)
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19 December 2015 You need to charge service tax on capital goods supply on rent and you can take the credit of input, input services and capital goods used in the providing of output service.

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