Cenvet Credit

[Guest]

Dear Experts Team,

1.Can company take Cenvet Credit adjustment at the time of payment of Service Tax if the company is deposit Service Tax on behalf of service provider

2. Can company take Cenvet Credit on Krishi Kalyan Cess.

[Ganeshan Kalyani]

1. Service tax liability of service provider is under his registration and liability of service receiver is under his registration. Both of their liabilities are different. You cannot adjust the service tax paid excess with his liability. Service Provider should pay his dues.

2. Kristi Kalyan Cess is cenvatable only to Service Provider only.

Thanks.

[KASTURI SETHI]

Sh.Umesh Kumar Ji,

I endorse the views of Sh.Ganeshan Kalyani, Sir. !00% correct.

[Guest]

But the company received service and applicable reverse charges. So how can we adjusted Krishi Kalyan Cess

Pls. suggest with example

[Ganeshan Kalyani]

Sir if company is a manufacturing unit then credit of Krishi Kalyan case is not allowed. If in addition to manufacturing activity it also provides any service then the input credit of KKC is available as credit to be set of against KKC payable. Thanks.

[KASTURI SETHI]

Sh.Umesh Kumar Ji,

Pl. wait for issuance of notification in this regard.

[Guest]

Thank You Very Much sir, for your valuable openion

AI Summary

Can a Company Adjust Cenvat Credit When Paying Service Tax? Krishi Kalyan Cess Credit Clarified A user in a discussion forum inquired whether a company can adjust Cenvat Credit at the time of paying Service Tax on behalf of a service provider and if it can take Cenvat Credit on Krishi Kalyan Cess. An expert clarified that the service tax liabilities of the service provider and receiver are separate, and the service provider must pay their dues. Krishi Kalyan Cess credit is only available to service providers. Another expert confirmed this view, and further discussion suggested that manufacturing units cannot claim Krishi Kalyan Cess credit unless they also provide services.