Cenvat Credit on service Tax, Service Tax

[Dhanasekar Amaresan]

we are a manufacturer of Rubber products and also Equipment spares due to excemption we are not registered in Central excise dept. but we are purchasing dutiable material for input purposes. We are a service provider and paying service tax. My query is : Can we eligible to claim cenvat credit for adjust of Service Tax and we have import duty also.

Posts / Replies

[CA Rachit Agarwal]

For claiming the Cenvat Credit, you have to maintain separate accounts for receipt, consumption of the inventory used for exempted goods and dutiable services (Output Service).

If not then he can follow any of the 2 options

 1. Pay Excise Duty on entire exempted goods @ 5%.

2. Pay an equivalent amount of Cenvat Credit attributable to the exempted goods.

Refer Rule 6, of the Cenvat Credit Rules, 2004

[Brijesh Verma]

since you are providing taxable services and also manufacturing exempt goods, so you will fall under Rule 6(3) of the CCR'04.