Dear Sir,
Our excise duty calculation is as follows
MRP 500
less abatement @ 35% 175
Net MRP 325
Excise duty Rs.16.74
( @ 5.15% on 325)
Service tax input credit
Taxable Services 100
service tax on 100
(100*50%*10.3%) 5.15
Total Invocie Value 105.15
My question is whether we can claim Rs.5.15 as cenvat and can make payment of difference of Rs.11.59 as excise duty?
Pls explain the concept of service tax cenvat abatement.
CAclubindia
