Payment of service tax through cenvat or PLA, Service Tax

[ashok jain]

We are a manufacturing unit and have surplus of CENVAT credit for more than Rs. 1 cr. this credit has been accumulated on Capital Goods and Raw material as we are in exports also. Now we have provided consultancy service to a unit and we have charged Service Tax of Rs.5 lacs on invoice raised by us. Now question is whether the payable amount of Rs. 5 Lacs can be adjusted against CENVAT Credit available from Manf activities or we should deposit thru PLA.

Posts / Replies

[Dinesh Gupta]

Yes, where the manufacturing unit service providing units are same. There is no bar in using the available cenvat credit for making payment of service tax or central excise.

[Rama Krishana]

The view express by Mr. Dinesh Gupta appear to be correct. Inter use of cenvat credit is no bar. You can use cenvat credit availed for the purpose of central excise to pay service tax.