Cenvat credit

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I've paid a bill in which service tax of Rs. 25555.00 including swach bharat cess was there. Now , I've raised a bill in which service tax of Rs. 13000 including swach bharat cess and krishi kalyan cess is included. I want to confirm that do I have to make separate payment for krishi kalyan cess on due date to the department as I already have the credit of service tax and swach bharat cess.
Replies (4)

You should not take credit of Swacch Bhart Cess which you have to be paid on receive of input credit.So, KKC & SBC collect from Service TAX provider to be deposited in Seperate code.

In your input service, there is no KKC so you should discharge your liability on output services seperately.

 

 

Hi Mohak,

For your clarification regarding the Swach Bharat Cess, SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Notification no. 28/2016- Central Excise (N.T.) allows CENVAT credit of KKC paid on input services to a service provider. The notification further provides that CENVAT credit of any other duty will not be allowed to be utilized for payment of KKC and only CENVAT credit of KKC paid on input services can be utilized only for payment of KKC on output services.

Hi,

We use to take Proportionate cenvat credit of Input Service tax(14%) of those services which are used for both providing taxable services and taxable trading of goods in the ratio of last year turnover basis.

Does the same procedure is used for taking Cenvat of KKC in the ratio of last year turnover or we can take full credit of KKC irrespective that service is fully used for taxable Output service or for trading of goods or both.

Please anyone revert.


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