Cenvat credit on capital goods removal for output service provider

[yateen vyas]

Sir,

One of service tax provider has a centralized registration providing service from one place now it changing its place of service to other place so now in this case capital goods reversal is required or not e.g. Service provider from rajas than have centralized registration providing service from Rajasthan now want to shift to other state.

RgdsÝateen

[S G]

Hi Yateen,

From your query it is appearing that the assessee is having centralised registration in Rajasthan and the assessee wants to change the address of centralised premises to another address.

In this case, assessee has to amend the Service Tax registration for changing the address of centralised premises and file the letter along with the amended application (ST 1) with old range superintendent for file transfer and also file the amended application with new jurisdictional office.

As the service tax number shall be same; hence there is no need to reverse the CENVAT Credit availed on capital goods if the same also moving from that place to another.

Hope you will find the same in order!!

Thanks

Sumit Aggarwal

[yateen vyas]

Thanks

[Rajagopalan Ranganathan]

Sir,

Rule 10 (2) of Cenvat Credit rules,2004 stipulates that -

"If a provider of output service shifts or transfers his business on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provision for transfer of liabilities of such business, then, the provider of output service shall be allowed to transfer the CENVAT credit lying unutilized in his accounts to such transferred, sold, merged, leased or amalgamated business."

Therefore, in my opinion, you can transfer the credit to your new place of bussiness.

[yateen vyas]

thanks sir

AI Summary

Cenvat credit transfer permitted when centralized registration shifts and capital goods move, with amended registration and file transfer. Where a provider with centralized registration changes the address of centralized premises but retains the same service tax registration and moves the capital goods, the assessee must amend registration and seek file transfer; reversal of CENVAT credit on capital goods is not required. Transfer rules for unutilized credit allow carrying forward or transferring CENVAT credit on business shift, supporting transfer of the credit to the new place of business once registration amendment and file-transfer formalities are completed.