Eligibility of crdit on KKC -reg

[vinay wakde]

We are manufacturer as we all service provider. We are providing service under service category Supply of Tangible goods and paying service tax. The credit accumulated on various Input services received by us shall be utilized for payment of Excise duty and also for adjusting the payment of service tax on above referred service category.

As per the Notification No. 28/2016 (N.T) dated 26.05.2016 w.e.f. 01.06.2016, the CENVAT on KKC shall be available only for the service provider and the same shall be utilized towards payment of KKC.

Kindly let us know whether we have to segregate the input services which are exclusively used for our owned barges, Mini Bulk Carriers, Tugs etc. on which we are paying service tax under service category supply of tangible goods and have to take credit on KKC against that input services only?

Regards,

VINAY

 

 

AI Summary

Credit Eligibility on Krishi Kalyan Cess: Direct Connection Required Between Input and Output Services for Claim A manufacturer and service provider inquired about the eligibility of credit on Krishi Kalyan Cess (KKC) under service tax regulations. They sought clarification on whether they need to segregate input services used for owned barges and other tangible goods, to claim credit on KKC. The response indicated that to avail credit, there must be a direct connection between the input KKC and the output KKC.