Final product exempted

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2010 Dear Experts,
If a mfg. has final product exempt from Excise duty, then:
1) what is the traetment for its Excise inputs paid on purchase?

2) What is the traetment of Service Tax paid paid on input services paid?

3)Beside adjustment of Service tax with Excise duty, can the Service tax input can be adjusted with Service tax output, and the balance /excess input service tax remaining be treated as expenses and debited to P/L account seperately?

Thnx in advance.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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15 November 2010 If final product is the single product then no input credit will be available, either for excise or service tax.

You can use service tax input credit both for duty and service tax.