SERVICE TAX REFUND

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..... SERVICE TAX REFUND
Query (Issue) Started By: - SACHIN SHAH Dated:- 26-8-2011 Last Reply Date:- 31-8-2011 Service Tax
Got 5 Replies
Service Tax
sir , We are taxtile mfg co and our plant located at HARIDWAR & which is exempted excise duty , but Service tax GTA we are pay . So Input tax credit will be accumulated . How we are utilise this accumulated cenvat credit . Please give your .....

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..... expert advise on this . SACHIN Reply By abhi parakh: The Reply: Dear Mr. Sachin This prima facie does not appear to get through. However, a divergent view as to tax planning &/or logistic re-engineering may be developed. For that purpose it would be imperative to snap through the following details - (a)Value of services received annually from the output service provider(s) (b)Ancilliary sis .....

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..... ter concerns if any Regards, CA Abhi Parakh Reply By DEV KUMAR KOTHARI: The Reply: When the unit is exempt on output tax, there will generally be no CENVAT credit, this is becasue basic principal of CENVAT is to do away with cascading effect on tax or duty on inputs when output is taxable. However, as pointed out by Mr. sachin there can be some financial planning (not necessarily tax planning .....

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..... ) to maximise PAT. For that purpsoe the other unit should be a unit owned by the same manufacturer (and not sister concern) and other conditions should also be favorably in place. Reply By NEERAJ KUMAR, RANCHI: The Reply: Your query is a litlle clumsy. If you are not paying excise duty so you are not taking cenvat credit as well. Now you are paying s.tax on GTA as a recipients of service, so how .....

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..... the tax credit will be accumulated is now understood, However you can refer to input service credit distributor provisions, Reply By SACHIN SHAH: The Reply: Dear Niraj , We have not ISD Registration & we are mfg. unit , we pay GTA input and out put Material transportation expense , so accumulated service tax is Input -- GTA payment , which service tax credit we are availing every month . As p .....

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..... er my knowledge HO will take ISD Registration and distribute crdit but in this case mfg unit & exemted in excise duty only not service tax . Hope you are cleare , pl. suggest in this case . Regards, SACHIN Reply By r.rajkumar kumar: The Reply: wnen the location is exempted from duty , input credit canot avail.
Discussion Forum - Knowledge Sharing .....

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