Cenvat Credit of Krishi Kalyan Cess

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Cenvat Credit of Krishi Kalyan Cess
Query (Issue) Started By: - Greeshma Vp Dated:- 13-6-2016 Last Reply Date:- 22-6-2016 Service Tax
Got 4 Replies
Service Tax
Dear experts, Please give your opinion on whether a manufacturer can avail Cenvat credit of Krishi Kalyan Cess (KKC). I am aware that as per the provisions, Cenvat credit of KKC can be used only for payment of KKC on output s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ervice. It is also clear that cenvat credit of KKC cannnot be used for payment of KKC on services under Reverse Charge Mechanism. So a manufacturer has no chances of utilising KKC. My query is whether a manufacturer can avail Cenvat credit of KKC in books and hope to claim a refund of the same at a later point of time. Or should the manufacturer write-off KKC as expenses? Thanks, Greeshma Rep .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ly By SHIVKUMAR SHARMA: The Reply: Dear Greeshma Vp Manufacturer can not avail cenvat Credit of KKC ,The Service Provider can take cenvat of KKC. SHIVKUMAR SHARMA Reply By Ganeshan Kalyani: The Reply: You have correctly understood the provision. In the same topic there was a lengthy discussion In this Forum. As of now manufacturer is not allowed to take credit of KKC, but to be on a safer si .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... de this credit need to be parked in the accounts so that if in future the credit is made eligible to manufacturer credit can be availed. However parking the credi in your account would inflate your current asset in the balance sheet, which may show wrong picture. Further if you expense it out at the time of booking of invoice you will get the benefit of deduction in debit side of the profit and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... loss account. Now the choice is yours. Reply By Greeshma Vp: The Reply: Thank you for the responses. I think we may decide to book KKC as expenses rather than avail credit. Reply By Ganeshan Kalyani: The Reply: Sir, you may decide so. If any notification comes in line with the query then you will have to re-account as Cenvat credit in books. Thanks.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X