central excise duty credit on service tax

Dear Sir,

We are a service industry and recieved a work order from a trading firm to install an ITEM (fume duct) at a manufacturing plant. This item is a part of a machinery (FUME DUCTING for FURNACE MACHINE).

The manufacturer from whom we are buying the fume duct give us a Excise Invoice.

We, in turn, are going to issue a service bill to pur customer (the Trading company).

CAN we set-off the central excise duty recieved from our supplier , against our service tax ??

Consultant in Indirect Tax Matters

Dear Sir, According to me, if the so called Duct is an input for providing your output serrvice, then you eligible for cenvat credit of duty paid on such duct and while raising the invoice, you are liable to pay service ta on the portion of service value as per the prescribed percentage in terms of the relavent Notification, you can certainly use the cenvat credit of such duty towards paymen tof your Service Tax. Regards Suryanarayana



Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum



IPC Grand Course     |    x