Service Tax Credit

[Shaan Shaan]

Hello

Please tell me, we have a manufacture unit & having excise registration. My question is that, can we take service tax credit against excise duty payable ??

We don't have service tax registration only excise registration is there.

Please tell me if we takes service tax credit against excise payable under which section or notification or circular

Regards,

Shaan

Pune

[KASTURI SETHI]

Dear Querist, Under Rule 3 of Cenvat Credit Rules, 2004, you can take credit of Service Tax PAID and NOT on the basis of payable. W.e.f. 1.9.2004, Cenvat credit can be taken across the board. CE duty paid can be taken in Service Tax and vice versa. Only for availing credit of ST paid, registration is not required. In case service is under RCM, Service Tax registration is required.

[YAGAY and SUN]

It is settled legal position that for availment of CENVAT credit Registration is not required. However, under RCM you need to get the ST Registration first and then you can avail the CENVAT credit provided according to the provision of CENVAT credit Rules, 2004 as amended from time to time. CENVAT credit of Service Tax and Excise duties can be cross utilized.

[Ganeshan Kalyani]

I support the views of the expert. Also eligibility of the service tax credit need to be analysed before availing the credit.Thanks.

AI Summary

Cenvat credit can be cross-utilised between service tax and excise; registration only needed for reverse charge services.
Cenvat credit of service tax paid is eligible for cross-utilisation against central excise duty (and vice versa) under the Cenvat Credit Rules; credit is of tax paid not payable, service tax registration is not required merely to claim credit but is required where services fall under the reverse charge mechanism, and eligibility and procedural compliance must be verified before availing credit.