Remission of duty -reversal of credit on inputs & Input services - reg

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..... Remission of duty -reversal of credit on inputs & Input services - reg
Query (Issue) Started By: - vinay wakde Dated:- 11-3-2016 Last Reply Date:- 15-3-2016 Central Excise
Got 4 Replies
Central Excise
As per Rule 3(5C) of the CCR, 2004 as amended, it is required to reverse the CENVAT credit availed on inputs as well as on input services which are used in the manufacture or production .....

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..... of goods where the duty is ordered to be remitted under Rule 21 of the Central Excise Rules,2002. We have calculated duty to be reversed on inputs, based on quantity consumed in the manufacture of finished goods but we find it difficult to calculate duty reversal in respect of credit taken on Input services. If the fire incidence occurs on 16th March, 2015, kindly guide us method to be followed t .....

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..... o calculate reversal of credit on input services. Regards, VINAY Reply By KASTURI SETHI: The Reply: Dear Sh.-Vinay Wakde Ji, You will have to consult Cost Accountant or Chartered Accountant.How much input service credit is to be reversed is to be worked out and certified by CA or Cost Accountant. The department accepts such certificate. In this context, Board's Circular No. 120/01/2010-S. .....

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..... T., dated 19-1-2010 refers. Though this circular pertains to refund claim, yet it is relevant to solve your problem. Reply By surya narayana: The Reply: Dear Mr. Vinay, I concur with the views expressed by shri. Kasturi Swethi Ji. The requirement of reversal of proportionate credit taken on input services is included from 2014 only. The term is very specific about reversal of proportionate cr .....

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..... edit of input services used in the production of remitted goods and hence, if you are able to identify such services then it can be worked out and if not it is the best option to obtain a certificate from a cost accountant. I am of the view that in general, any Service Tax paid on freight charges or CHA and import related charges if any paid on the material used in such remitted products required .....

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..... to be considered. But as an abundant caution, it is advisable to consider the common input services like security, ETP etc., to be included on proportionate basis considering the month in which the remitted product is manufactured while obtaining the CA certificate. Best Regards Suryanarayana Reply By KASTURI SETHI: The Reply: Sh. Surya Narayana Ji, Thanks for enrichment of knowledge, Sir. .....

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..... Reply By Ganeshan Kalyani: The Reply: Nicely explained by Sri Kasturi Sir and Sri Surya ji. Thanks.
Discussion Forum - Knowledge Sharing .....

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