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CENVAT Credit query

A B B (Job) (104 Points)

28 May 2010

If service provider company (shipping company providing point A to point B cargo transport service) buys goods (spares, capital goods etc) from non manufacturers i.e suppliers, so will this company eligible to avail CENVAT credit on excise duty paid by supplier?

And same with Transport Service obtained. The company pays Service Tax on behalf of Transport Service provided by Transporter, So will this Shipping company avail the CENVAT Credit of the ST paid by this co on behalf of Transporter.

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7 Replies

CA Amit Kumar Khaitan (Research Analyst) (360 Points)
Replied 28 May 2010

1) You can avail the duty on goods supplied by your suppliers only if they are registered First Stage or Second Stage dealers in terms of the CENVAT Credit Rules, 2004.. If they are ordinary traders, you are not eligible for the credit of any excise duty paid on those goods...

You can find that out by looking at the invoice issued by the suppliers.. The invoice will mention their Status...if it is a normal invoice then get the matter clarified with ur suppliers

2)Yes... you can take the credit of that ST paid after you have actually paid it... Its still an input service...its only that, now you are yourself paying it... Rule 3 allows such credit..