Credit of service tax

This query is : Resolved

DEEPAK ROHERA (Querist)
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04 February 2017 Dear Expert
Greeting of the day!!!

We are a manufacturing & Trading company and we are registered in excise and service tax as a Manufacturer, Importer, and Traders all three licence we have we would like credit of service tax which we paid on various services like watchmen security, Telephone bill , transportation, AMC of machines which we use in both parts (manufacturing and trading) what is processor. what is the time limit to take credit.

CA Ashish Garg

CA Ashish Garg (Expert)
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04 February 2017 Trading is a exempted service in terms of CENVAT Credit Rules and since, you are engaged in manufacturing of final goods and provision of exempted service, you are entitle to avail CENVAT Credit in terms of Rule 6 of CCR.

Rule 6 provides following options for availment of CENVAT Credit
a) Avail full CENVAT Credit on inputs and input services used for manufacturing of final goods and provision of taxable supplies
b) Maintain separate records for inputs and input services used for manufacturing of final goods and provision of taxable supplies and exempted goods and services
c) Pay 6%/7% of exempted goods and services
d) Avail full CENVAT Credit of inputs and input services used exclusively for taxable goods and services and avail proportionate credit for common input and input services

Refer rule 6 for conditions for availment of credit.

CENVAT Credit needs to be availed within 1 year from the date of invoice.