Cenvat Credit

[Ravindra Mohanty]

Client is register under the Importer under Rule 9 .

main business in trading the good all goods import from the outside india and sale in local or Export

Please clarify following point if possible

1) Whether if he export outside India got the Duty drawback.

2) whether if will availed cenvat credit paid on service tax on Input service C& F agent .

thanks in advance .

[Ravi Kumar]

www.taxreturnbox.com

for point 1. you may not use duty drackback until fully export all your production, in your case you are not paying duty as in inputs.. but you may claim lower duty at custom port indicating purpose as export..

for point 2: you may use service tax credit upto portion of your taxable services only, if you are not registered under Service tax then not allowed..

AI Summary

Cenvat credit and duty drawback: credit limited to services used for taxable supplies; drawback only for bona fide exports.
Duty drawback applies only to genuinely exported goods and cannot substitute for duties not paid on inputs; where permitted, a concessional or lower customs duty may be sought by declaring export purpose. Cenvat credit of service tax on input services like C&F agents is available only to registered taxpayers and only to the extent those services relate to taxable outputs; credit is disallowed for unregistered entities or for services used for exempt or non-taxable supplies.