Vishal (Chartered Accountant) (24 Points)
17 December 2009
Trader (say 'A') is a trader of Computers, Computer peripherals and provider of AMC services. 'A' is registered under MVAT and Service Tax. 'A' has purchased goods from Dell India P Ltd who has charged us CVD @ 8% and VAT @ 4%.'A' has subsequently sold this goods to customer (Say 'B') charging VAT @ 4%.
Queries:
Can 'A' claim the CENVAT credit of CVD paid to Dell India against the service tax liability towards AMC services.
Can 'A' charge CVD @ 8% to its customers.
Sorabh Gupta
(Manager ( Taxation ))
(877 Points)
Replied 17 December 2009
Dear Vishal
1) As "A" can't settoff the service tax liablity from CVD credit amount as CVD is just a part of Excise Duty . You can adjust the liabilty of Excise thru CVD.
2) Yes "A" can shift the CVD part to its customer by raising an excise invoice
Hope ur query is resolved.......
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 17 December 2009
Queries:
Can 'A' claim the CENVAT credit of CVD paid to Dell India against the service tax liability towards AMC services.
Yes, if Dell India is importer or first stage dealer or second stage dealer
Can 'A' charge CVD @ 8% to its customers.
Yes, A can pass on CVD but not charge, if A is first stage dealer or second stage dealer
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