CENVAT CREDIT / TAX LIABILITY

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... INDIAN COMPANY SUBSIDIARY OF INTERNATIONAL COMPANY, IMPORTS CERTAIN GOODS FROM PARENT COMPANY FOR JOBBING PURPOSES, DO THE JOB MACHINERY WORK HERE IN INDIA AND RESEND THE GOODS TO INDONESIA FOR SALE THERE. NO IMPORT DUTY IS BEING PAYABLE AS FOR JOBBING IMPORT AND THEN EXPORT AFTER JOB WORK, TAKEN LICENSE FROM CUSTOMS FOR CONCESSIONAL RATE OF DUTY FOR THE SAME. WHETHER ANY EXCISE OR SERVICE TAX LI .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ABILITY ARISES ON CHARGES TAKEN FROM THE PARENT COMPANY AS LABOUR SERVICE CHARGES. WHETHER CENVAT AVAILABLE OF THE INPUT SERVICES USED IN SAID JOB WORK. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Since you are receiving the machinery from your holding company for performing job work on the same and export the same as per instruction of the holding company no excise duty is payable .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... by you since you are exporting the job worked machinery outside India. However, it will attract service tax if the job work done by you does not amount to manufacture as per Section 2 (f) of Central Excise Act, 1944. Since you are exporting the job worked machine to a place outside India you are also exempted from Service tax. Regarding CENVAT credit of duty paid on inputs, capital goods an .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d service tax paid on input services, you are eligible to take the same if the job work done by you amounts manufacture as per the provisions mentioned above. If the job work done by you does not amount to manufacture then you are not eligible to avail the credit. However, since you are exporting the job worked machine you can claim refund of such credit under rule 5 of CENVAT Credit Rules, 200 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 4 . This is my opinion. - CENVAT CREDIT / TAX LIABILITY - Query Started By: - puneet virmani Dated:- 13-6-2015 Central Excise - Got 1 Reply - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X