Capital Goods on Rent

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..... Respected Forum, I am registered service provider, procured Machinery and taken credit of CENVAT on capital goods and adjusted against the service tax charged by me from my parties. Also procured inputs used for the providing output service and taken credit. Central excise audit party is of opine that Credit on Input is not allowed to service provider and asking me to debit the credit involved .....

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..... on the inputs. I have utilized plant and machinery for three years, now i have given entire Land, Building and Plant and Machinery on rent and charging service tax and depositing by Challan. The present service provider is providing services Central excise audit party is of opine that i have utilized machinery for three years, hence only 30 percent credit on machinery is allowed to me and bal .....

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..... ance 70 percent credit i should deposit by Cash, although i am depositing service tax on the rent of that plant and machinery. Please guide me accordingly and also provide me notification/clarification/circulars etc or any decision of court in the matter. Thanks and REgards - Reply By Sanjeet Kumar - The Reply = Dear Through your query it is not cleared what are you asking. Either you a .....

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..... re asking for the capital goods or input. In case of capital goods, as far as i understood your issue on capital goods. Earlier the CG is used for Service 1. now you used the same CG for Service 2. there is no sale/transfer of CG. So Issue of Rule 3(4) does not arise in this case. - Reply By Sanjeet Kumar - The Reply = Sorry it is rule 3(5) for the capital goods. - Capital Goods on Re .....

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..... nt - Query Started By: - Ashok Chopra Dated:- 25-1-2014 Central Excise - Got 2 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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