service tax

[ASHISH YADAV]

Dear sir

my qeury is we have 4 branches in Maharashtra 2 unit excisable and 2 unit is non excisable .we have receive manpower in all unit month 2 lacks we are paid service tax on manpower but we can not take the credit in non excisable unit .how to save the service tax credit .manpower .

Regards

Ashish

[Himansu Sekhar]

Sir,

For non excisable units, you cannot take credit as per Rule 6 of CCR'04.

[KASTURI SETHI]

Are non-excisable units not registered with Service Tax ? Are non-excisable units not paying Service Tax other than GTA ?

[Nash Industries I Pvt Ltd]

As the other two units are not manufacturer, credit cannot be availed. However, if those units are service providers and provide taxable output service, credit can be availed.

If the service is execution of works contract from those excise unregistered premises, the refund under rule 5B of CCR can be claimed read with Notification No 12/2014 CE(NT) dated 03.03.2014

Regards

S.Ramaswamy

[YAGAY and SUN]

Cross utilization of CENVAT credit is allowed between C.E. and S.T.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ramasami.

AI Summary

CENVAT credit restriction: non excisable units cannot claim input credit unless they supply taxable output services.
The question is entitlement to CENVAT credit on manpower services where some units are excisable and others are non excisable; credit is not available for non excisable units under the CENVAT Credit Rules. If a non excisable unit provides taxable output services, input credit may be claimed for inputs used in those taxable outputs. Cross utilisation between central excise and service tax is permitted, and for services related to works contracts from excise unregistered premises a refund route under the CENVAT rules may be available with reference to the executive notification addressing such works contract inputs.