Rajiv Goyal (Management Trainee-Internal Audit & Assurance) (130 Points)
20 June 2008can anyone have service tax cenvat credit amendments.is dere any new notification out dere in d finance act,2008
Shiv om Jindal
(ACA)
(263 Points)
Replied 20 June 2008
Yes, there are new provisions in respect of CENVAT credit. These are beneficial to those service poviders who were earlier not eligible for 100% credit. Now one of the options that a serive provided can exercise is to pay the Service Tax @ 8% on exempt output services and 10% Excise on exempt products and avail the 100% CENVAT credit. And there is also another option available in which last years unavailed CENVAT credit can be set off against the current years tax liability but with certain restrictions which is difficult to tell in a summarised way. One of these options was exercisable in May.
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