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Service Tax set off in excise duty payment

Shobhit (CA, CS) (100 Points)

16 March 2011

Hi Friends,

I have query in Service Tax setoff.

we need to take setoff of service tax paid (input service) against excise duty payment on production of goods. so are we required to take service tax registration also ??

Pls reply.

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16 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 16 March 2011

yes, u have to obtain service tax registration to avail input credit

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Lalit Kumar (Vice President ) (2213 Points)
Replied 16 March 2011

Yes Reg of ST is must..

Pankaj Arora (Learner) (3134 Points)
Replied 16 March 2011

Yes if you are not register under service tax than you can not take input credit of service tax..

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 16 March 2011

As manufacturer you can take credit of input , capital goods and service tax credit used in production or manufacturing of final product.

No need to have service tax registration for taking service tax credit

Read rule 3 of the cenvat credit rules.

Vikash Kharvar (Dy. Manager -F&A) (469 Points)
Replied 16 March 2011

For CENVAT Credit you should registered with ST Department.

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Arun Kumar (Deputy Manager Assurance) (230 Points)
Replied 16 March 2011

No need of separate registration to take Service tax credit.

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 17 March 2011

Manufacturer as well as service provider are elligible to get cenvat credit of input services. So, no seperate registration is required under service tax for taking the credit of input service.

Jeevesh Mehta (Advocate- Corporate Commercial & Indirect Tax Advisory) (861 Points)
Replied 17 March 2011

No need to take registration under service tax to take the credit .

A manufacturer can take the credit of the input service tax and excise duty paid on inputs at the time of making the final duty payment on final products.

As people say that it is required to be taken .... please answer one thing--- if I take registration just to take the credit - do I need to file the returns ? if yes then under what head? am I providing any service ? am I a Input Service distributor? am I a Importer of Service ? .........

regards

CA Ankur Mittal (Assistant Manager @ Reliance Communication) (759 Points)
Replied 02 June 2011

@ jeevesh an ISD ( input service distributor) is required to take service tax registration..you dont have to be service provider to take ST registration as in the case of GTA the service receiver is liable for ST payment..and dealer registered in central excise reciving GTA service has to get himself registered and this is not the sole reason for registration.

ISD is the main reason, shobit in this present case is claiming ST Credit..and distributing so he is an ISD

RAMESH PRAJAPATI (SERVICE) (52 Points)
Replied 02 June 2011

As per Service Tax Rules, Service Tax registration are manadatory for those who are liable to pay service tax. Not others.

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 02 June 2011

No need for sperate registration. See e book - understanding service tax concepts in files section for more clarity.

3 Like

K. Kuppuswamy (Consultant) (45 Points)
Replied 03 June 2011

The point of registeration under service tax does not arise unless you provide some taxable service. for the sake of availing input credit of service in Excise Registeration does not require registeration under service tax since the Cenvat Reules are common for both.

The same has been clearly conveyed.

regards,

kkswamy

Originally posted by : Madhukar N Hiregange

The cenvat credit rules are common for central excise and service tax and they have been merged wef 2004. A person regiatered under central excise can avail the service tax credits and a person registered under servic etax can avail the central excise credits.

No need for sperate registration. See e book - understanding service tax concepts in files section for more clarity.

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 06 June 2011

There is absolutely no need to be registered under serviuce tax to be able to avail the credit of service tax when one is registered under central excise.

I do not know how experts have been opining otherwise when there is no doubt.

The Cenvat Credit rules are common to both manufacturers and service providers and corss credit is available.