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

 

 

[Ganeshan Kalyani]

Sir the input KKC should have nexus with the output KKC to avail the credit. Thanks.

AI Summary

CENVAT credit nexus requirement: input KKC must relate to output KKC before credit can be availed. CENVAT credit on KKC is available only to a service provider and may be utilized for payment of KKC; credit can be availed only where the input KKC or related input services have a direct nexus with the output KKC liability. Input services used for taxable provision of supply of tangible goods on owned vessels must be segregated and claimed as credit only to the extent they are exclusively and directly linked to the KKC-liability.