Cenvat credit on exempted and non exempted

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..... Cenvat credit on exempted and non exempted
Query (Issue) Started By: - Vinod Daga Dated:- 5-12-2006 Last Reply Date:- 11-12-2006 Service Tax
Got 2 Replies
Service Tax
If a company is prov .....

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..... iding service for which it uses heavy machinery and pays excise duty on capital items purchased. Also few of the clients are service tax exempt and few of the clients pay service tax, but for both the .....

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..... type of clients same machinery is used. How can we claim the cenvat benefit in this case. Reply By Surender Gupta: The Reply: If an eligible cpaital goods is used for provided exempted and non exemp .....

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..... ted output services, you are entitled to avail the Cenvat Credit 100%. i.e. in the First year 100% of the 50% and in the subsequent year 100% of balance duty. Reply By Madhukar N Hiregange: The Reply: .....

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..... Yes credit is available even if service is provided to clients who are exempt. Incidentally service tax is only exempt for SEZs and in relation to construction for non profit organisations
Discus .....

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..... sion Forum - Knowledge Sharing .....

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