Hi all,
One of our client is paying service tax @ 3.399%. Can we claim cenvat on capital goods, excise duty of cement and steel.
Nitin Garg
3 Replies
Satish
(CA Final Student)
(479 Points)
Replied 17 December 2009
On what service the service tax is being paid?
PINTU
(ARTICLE ASSISTANT)
(58 Points)
Replied 17 December 2009
Cenvat on excise duty paid on capital goods are eligible for set off against service tax liability, provided 50% of the cenvat credit are adjusted in the year of purchase and balance in the subsequent year.
Above all Service Tax is a rule which is governed by the Central Excise act administered by Finance Bill 1994.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 17 December 2009
It appears that instead of 10.3% abatement is being claimed. In such cases the credit on cement/ steel in my vioew would not be admissible though there is no specific bar in the WC provisions in ST.
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