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Service Tax Input Credit

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Swarup

Head Finance

22 Points Posted on 19 February 2010

Hi Experts,

I know that a Manufacturer can set off input tax credit against excise payable but my question is when I am buying the excisable Godds and thereby paying Excise Duty, Cam I claim my input service tax credit against that Excise duty.

Awaiting for early reply, Thanks in advance.

Swarup.

Replies (3)

Pankaj Arora

Learner

3431 Points Posted on 19 February 2010

Dear Swarup

Yes, You can take Input Credit of Service Tax against Excise duty paid.

CA CS Akashdeep Singh

Practicing CA

867 Points Posted on 19 February 2010

As per Rule 3(4) of Cenvat Credit Rules, 2004, Cenvat credit can be used against the payment of excise duty.

Cenvat credit can be utilized as per procedure given under Rule 3(1) of Cenvat Credit Rules, 2004.

Venkat M

FCA

188 Points Posted on 21 February 2010

You can avail CENVAT credit on inputs as soon as you receive them in the factory. Thus,it's not necessary to pay duty before availing CENVAT credit on inputs.