Utilisation of Cenvat Credit

[kiran pai]

Dear Sirs,

We are the manufacturer of textile fabrics  having manufacturing unit at Silvassa and registered office at Mumbai. We had some let out property in Mumbai and around Maharashtra.  We have opted for  centralised registration certificate of Service Tax for GTA and Renting of Immovable Property service.  Now our queiry is,  can we avail the cenvat credit from the input credit and input service credit.  If yes shall we utilise the said cenvat credit for the payment of Service Tax on the Renting of Immovable property service for the concerned month.  Please reply me.

Thanks,

Kiran Pai. 

AI Summary

Cenvat credit: input service credit may fund output service tax, but GTA service tax requires cash payment.
Manufacturer with centralised service-tax registration can avail CENVAT credit on inputs and input services and distribute such credit via an Input Service Distributor to manufacturing units. Service tax on outward GTA services must be paid in cash and cannot be adjusted from the CENVAT account. CENVAT credit on renting of immovable property (an input taxable service) may be used to discharge output service tax liabilities. Amendments to definitions effective April 2011 increase the risk of interest and penalties for wrong availment or utilisation.