CENVAT credit

[munaj inamdar]

sir,

if bill is in the name of one factory and service used in another factory then whether assessee can claim cenvat credit for the same in a factory where it was actually used or any other way to claim credit in that factory because actually the biil containing name of the factory which was already closed by mistake he has printed that address 

[Snehal Kulkarni]

You are advised to get the bill corrected.

Service Tax is the consumption Based Tax. Assessee is eligible for Credit of Service Tax Paid on the Input Service, only when such services are received and consumed by the Manufacturing Facility / the output service provider.

Thanks

 

[dipsang vadhel]

I agree with Mr.mangesh lokre. but, this will not help in many case, for example,you have two or more manufacturing units & you are hiring some technical expert and their service  is utilized for all plants and bill addressed to any one unit, How will you deal with CENVAT aspect.

Therefore, if you have two or more factory, it is appropraiate that you seek for Registration as Input service distributor at your H.O. with all factories as units to which CENVAt credit is intendented to be distributed . In that case, You get all invoices in name of HO and distribute credit to unit where credit is required by following certain procedural aspects. This will help in instance utiliation of credit of SErvice TAX only.

You may explore this.

AI Summary

CENVAT credit entitlement requires services to be received and consumed by the claiming unit or use an input service distributor. CENVAT credit is claimable only when the input service is received and consumed by the unit claiming it; if an invoice names a different or closed factory it should be corrected. Alternatively, for multiple manufacturing units an Input Service Distributor at the head office may receive invoices and distribute credit to consuming units, subject to prescribed procedural and documentary requirements.