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credit of service tax

CMA Poornima Madhava (CMA) (13112 Points)

01 June 2009

please tel me whether a mfg company can avail 100% service tax credit (for input service) while availing excemption for SSIs under Central Excise notification no.8/2007 dated 01.03.2007

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3 Replies

Satish (CA Final Student) (479 Points)
Replied 03 June 2009

No chance! When the SSI exemption is availed the CENVAT credit is not allowed. Now There is only one rule CENVAT Credit Rules and service tax credit rule is merged with said rule. So CENVAT is construed as cenvat of both excise duty & service tax on Input as well as Capital goods in case of excise duty

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Sanjay (Service) (62 Points)
Replied 09 June 2009

Dear Sir,

Can we transfer the service tax credit under the input service distributors to our plant located outside the pune. We have a registration number under ISD (Input service distributors) and our registered office at Pune only.

If service tax bill will address on registered office & service will also consume at office only. So in this case, can we transfer this service tax credit to our plant located at outside pune? Is there any specific provisions made in service tax rules?

Pls clarify the same immediately.

Regards

Sanjay Bhagat

Executive Direct & Indirect Taxation

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 10 June 2009

The ISD once registered can accumulate the credits from all locations and then funnel to any particular location in India. Therefore transferring to unit outside Pune would certainly be available.