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

CENVAT credit portability allows input service credit to be used for output tax payment while requiring records and nexus.
CENVAT credit may be utilised across duties and services and a strict one to one correlation between input services and outputs is not required; utilisation must, however, have a nexus with the output service or product. Separate records of receipt and consumption of input services are required under the CENVAT rules, and while no separate monthly return to the service tax authority is mandated, an extract of the credit account should be furnished with periodical returns or maintained for compliance.