21 January 2011
Sir, We are a Manufacturing unit covered under Excise but presently is not registered for Service Tax. We are now being charged with service Tax on Factory rent.If we take service tax registration,can we use this input to offset Excise payments?(like we take Modvat credit on purchases)?? Please guide me.
You can take service tax credit for service tax paid on factory rent and utilise the same against your excise payments. And, taking service tax credit and offsetting the same against payment of excise does not require you to take services tax registration.
CAclubindia
