Payment of service tax by adjusting credit on input services- reg

[vinay wakde]

We are manufacturer as well as service provider. We have having our owned Barges & Tugs and sometimes we are giving these barges & tugs on hire. We are paying service tax under service category “Supply of Tangible Goods” for output service provided by us. Presently, the CENVAT credit on all input services accumulated during the month is adjusted for payment of Excise duty and we are making e-payment for the service i.e. Supply of tangible goods service, provided by us.

Kindly let us know whether one to one co-relation of CENVAT credit availed on input services towards payment of output service is required?

Whether we have to maintain separate record for receipt & consumption of input services as per Rule 9(6) of CENVAT Credit Rules?

Is there any monthly CENVAT Return other than CENVAT Return under Rule 9(7) of CCR, is required to be filed to the Service Tax authority, if we adjusted the credit taken on input service for payment of service tax on output service?

Regards,

VINAY

AI Summary

Clarification on CENVAT Credit: No Direct Correlation Needed Between Input and Output Services, Nexus Required for Service Tax. A manufacturer and service provider inquired about the necessity of correlating CENVAT credit on input services with output services for service tax payment. The responses clarified that no direct correlation is required between input services and output services or products. However, a nexus between the input service credit and the output service tax payable is necessary. It was also noted that maintaining a separate record for input services is required, but no additional monthly CENVAT Return is needed beyond the standard return, although an extract of the credit account should be included with periodical returns.