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?

[Surender Gupta]

In case of export of manufactured goods, you are entilted to avail the Cenvat Credit on the input and input services ustilized in export goods and entitled to utilized the credit for payment of excise duty on goods cleared on payment of excise duty. You are entitled to avail 100% credit.

AI Summary

Cenvat credit can be fully availed for inputs and input services used in export and utilized against excise duty. Exporters of manufactured goods may claim Cenvat credit on inputs and input services used in exported goods and utilize that credit for payment of excise duty on goods cleared on payment of duty in the domestic market; where inputs and input services are exclusively used for export, the exporter is entitled to claim full credit without bifurcation between dutiable and exempt goods.