Service Tax on non dutiable items.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Service Tax on non dutiable items.
Query (Issue) Started By: - Samik Chaudhuri Dated:- 12-11-2016 Last Reply Date:- 12-11-2016 Service Tax
Got 2 Replies
Service Tax
Sir I am in manufacturing co we have taken credit on input services such as GTA, Security & Works Contract. Till date we have not started the utilization of credit. But department asked me before utilization of Service T .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ax Credit we have to reverse the duty involved in making non dutiable items otherwise 6% duty will be applicable on credit utilized amount. We never take credit on GTA for input service related to non dutiable items but how can we segregate the Security & Works Contract for non dutiable items. Please advise me. With thanks & regards Samik Chaudhuri. Reply By MARIAPPAN GOVINDARAJAN: The Reply: .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... As per CENVAT credit rules input service credit can be taken immediately on receipt of invoice subject to the condition that the invoice is to be paid within three months from the date of invoice; otherwise the credit taken is to be reversed. Whether in your books of account you have taken the credit for the same? Please note credit can be taken within one year from the date of invoice otherwise i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t will be lost. Once you have taken the credit there is no time limit for utilization of credit. CENVAT credit cannot be taken for exempted goods or services. Rule 6 provides for the calculation of the credit for exempted goods. Reply By Ganeshan Kalyani: The Reply: If you can justify that the credit you have taken and intend to utilize is only of the input corresponding to the dutiable goods. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... either you can take entire credit and reverse the credit as envisages in the Rule or maintain separate books to identify the input that are used in exempted or dutiable goods.
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