Input credit of service tax
Vijay Chitte
We are exporting our goods and also saling the goods in domestic market. We are availing various input services while exporting the goods (Dutiable and exempted goods). My query is : Can we utilise the input service tax credit (which are exclusively used for exported goods) against our domestic excise duty? And we will have to bifurcate that how much credit avail for dutiable goods and exempted goods? Or availing 100% credit? Any one can guide me?
Exporters Can Use 100% Cenvat Credit from Input Services for Exported Goods Against Domestic Excise Duty A user inquired about utilizing input service tax credit, specifically for services used exclusively for exporting goods, against domestic excise duty. They asked whether they need to differentiate between credit for dutiable and exempted goods or if they can avail 100% credit. The response clarified that for exported manufactured goods, the user is entitled to avail Cenvat Credit on inputs and input services used for exports and can utilize this credit for paying excise duty on domestically cleared goods. They are entitled to avail 100% credit. (AI Summary)