Nisha (Excise) (35 Points)
20 July 2012Sir,
I am confused to read Notification No. 33/2012 Services Tax Dt. 20th June 2012 i.e. i asked this question pls help me.
we are manufacturer of valves & spare parts & services provider of maintains & repairs but we are not cross the limit of services tax of Rs. 10 lacs. So, my Question is can we take credit on input services received & this credit utilised for CENVAT credit or not. I am
Yajendra Adhikari
(Chartered Accountant)
(334 Points)
Replied 20 July 2012
Credit of tax on input service received for manufacture of goods is allowed.
But, if receiving of service is for providing of service, it is not allowed.
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 20 July 2012
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 22 July 2012
HAI
AS UR DOUBT IS CONCERNED PLEASE OBSERVE EXAMPLE
U ARE SMALL SERVICE PROVIDER,SO U HAVE EXEMPTION OF RS 10,00,000 FOR NON EXEMPTED SERVICES
U PROVIDE SERVICES WORTH rs9,50,000,AS UR NON EXEMPTED SERVICES DOESNOT EXCEED 10L U R NOT LIABLE TO PAY SERVICE TAX AT THE TIME U BILL UR CUSTOMER
WHILE PROVIDING SERVICES, U UTILISE SOME INPUT SERVICES WORTH rs10000 AND PAID SERVICE TAX OF rs1030
NOW THE ST PAID rs1030 CAN NOT BE AVAILED AS CENVAT CREDIT
SO IF THE SERVICES IN WHICH U HAVE BEEN PAID SERVICE TAX ARE TAXABLE,THEN AVAIL CENVAT CREDIT OF ST PAID ON INPUT SERVICES.
BUT U CAN AVAIL ST PAID ON CAPITAL GOODS IRRESPECTIVE OF WHETHER SERVICES U PROVIDE ARE TAXABLE OR NOT
SO CENVAT CREDIT OF CAPITAL GOODS WILL NEVER LAPSE
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