we have establish a new coal washery on which service tax is applicable under business auxiliary service can we use excise paid on capital goods as CENVAT credit for paying our service tax...if yes what is the procedure?
CA Amit Sharma (Accounts officer) (36 Points)
21 June 2010we have establish a new coal washery on which service tax is applicable under business auxiliary service can we use excise paid on capital goods as CENVAT credit for paying our service tax...if yes what is the procedure?
Shyam Lal Naik
(Service)
(6156 Points)
Replied 21 June 2010
The capital goods should be used for providing taxable service. Credit can be taken in 2 instalments. 50% in the first year and the balance in year 2.
There is no prescribed procedure.
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