10 December 2010
We are installing a new manufacturing plant. The land has been taken & civil work is going on. We have yet to take excise & service tax no.
Can we take service tax credit on different payments made to consultants etc & accumulate it & utilize for payment of excise duty after start of commercial production.
11 December 2010
Are you taking these expenditure in profit & loss account or capitalizing with the assets. If you are transferring the duty and tax in input credit account, input credit may be availed with output services.
12 December 2010
The credit for the capital goods [ no depr on the credit] can be availed 50%. Inputs can be availed and inpout services. It maybe advisable to register and keep availing the credit and also filing the returns.
15 December 2010
Input credit can be availed on all inputs. In case of consumables, full input credit can be availed, and in case of Capital Goods input 50% credit can be availed in the year of purchase / installation and then balance 50% on the same goods in the subsequent year.
HOWEVER, IT IS ESSENTIAL THAT YOU GET REGISTERED WITH CENTRAL EXCISE / SERVICE TAX AUTHORITIES, since the Department may later deny credit for the pre-registration period, leading to un-neccessarty litigation.
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