Dear all
In the following case can cenvat credit be claimed?
I manufacture goods & send the goods for installation at customers site. I hire contract labour on which i am charged service tax. Can i claim credit of service tax paid .
2 Replies
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14487 Points)
Replied 11 March 2010
you have collect service tax from customers you shoul pay service tax to govt. its not your exps. so you can not take cenvat credit on service charged/collected from party.
EKALABYA TALUKDAR
(SERVICE TAX CONSULTANT)
(666 Points)
Replied 13 March 2010
.
CENVAT CREDIT IS EARNED BY WAY OF PAYING SERVICE TAX FOR INPUT JOB WHICH WAS USED FOR OUTPUT JOB.
THE THEME IS = FOR A SINGLE JOB ONLY ONCE THE SERVICE TAX WILL BE PAID BY THE END USER
YOU WILL DEDUCT THE SERVICE TAX AMOUNT PAID FOR INPUT SERVICE FORM THE OUTPUT SERVICE. THE BALANCE WILL BE PAID TO SERVICE TAX AUTHORITY.
EVEN TELEPHONE BILLS (Service Tax Portion) ARE INPUT SERVICE. . YOU CAN CLAIM CENVAT CREDIT ON TELEPHONE BILL AND PAY THE BALANCE AMOUNT TO SERVICE TAX AUTHORITY
IF YOU HAVE NOTHING AS INPUT SERVICE QUESTION OF CENVAT CREDIT DOES NOT ARISE
.
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