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Cenvat Credit Under Rule 6(5)

Chetan D. (Management Accountant) (89 Points)

11 September 2009

Dear All,

We pay service tax on frieght as per rule 2(1)(d) of ST Rules, 1994. Also we pay excise on 20% of products as other 80% of our products are exempt. So can we get credit of service tax paid on construction service, IPR, Maintenance and Repair, Management Consultant, Real Estate Agent, Scientific and Technical Consultancy, Technical Testing and analysis, Audit fees of CA, under Rule 6(5) of Cenvat Credit Rules, 2004 for the payement of service tax and Excise?

Regards

CA Chetan Desai

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3 Replies

Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 13 August 2010

Yes there is no restriction on these 16 specified services

	Consulting Engineer [section 65(105)(g)]
	Architect [section 65(105)(p)]
	Interior decorator [section 65(105)(q)]
	Management consultant [section 65(105)(r)]
	Real Estate Agent [section 65(105)(v)]
	Security Agency Services [section 65(105)(w)]
	Scientific or technical consultancy [section 65(105)(za)]
	Banking and Financial Services [section 65(105)(zm)]
	Insurance Auxiliary Services concerning life insurance business [section 65(105)(zy)]
	Erection, commissioning and Installation [section 65(105)(zzd)]
	Maintenance or repair [section 65(105)(zzg)]
	Technical testing and analysis [section 65(105)(zzh)]
	Technical inspection and certification [section 65(105)(zzi)]
	Foreign Exchange Broker [section 65(105)(zzk)]
	Construction Service [section 65(105)(zzq)]
	Intellectual property services [section 65(105)(zzr)]

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P.Murugan (Accountant) (31 Points)
Replied 19 August 2010

This query regarding cenvat credit on capital goods.

That is till now, Ingot Mould used for manfacturing in our concern and the cenvat credit taken was on the basis of 50:50.Not only that, the Ingot mould purchased was cleared after one year (after availed 50 % Cenvat Credit) as C.I.Scrap and the same was used for manufacturing.

Now,Is it is possible as per proper rule if allowed by central excise law that can we avail 100 % cenvat credit on the ingot mould purchased on the basis of the same was cleared as C.I.Scrap on the same financial year.

Please clarify with central excise rule.