Utilization of cenvat credit

[Vartik Choksi]

Dear All,

I am registered under the Service of Construction of Resedential Complex service and and also certain other taxable Services.

The Construction Service provided by me is under the abatement benefit and i m liable to pay only 25% of such turnover as Service tax.

My Query is that whether i can utlize the credit earned by me from other taxable Services provided by me for paying the Service tax arising out of Construction Activity which is under abatement benefit.

Are there any Noti. TRU or ciculars for its clarity????

thanks in advance

RASAP

Parth kapoor

[rakshit verma]

your query is vague. You can not avail credit against taxable services provided by you. Further proviso to the Nofn.1/2006-ST, prohibits the credit of service tax on input services used in providing taxable services.

Rakshit verma

[Vartik Choksi]

Sir ,

I have clearly stated that can i utilize the credit for paying the Service tax on Construction Activity give that i am also into abatement benefit for the Construction activity

It is imp to note that the credit earned by me for supra is not on the construction activity but it is from other activity

Thanks

Regs

Parth Kapoor

[Dilip Darji]

Dear Sir.

There is no one to one relation for the Service Tax Credit earned by you. CENVAT credit earned by you on any Services are credit to CENVAT Credit Pool and you can very well utilise the same towards payment of any Service Tax except on GTA.

AI Summary

CENVAT credit usability: pooled credits may be applied to service tax liabilities across services, subject to exclusions.
Whether CENVAT credit from taxable services other than construction may be applied to pay service tax on construction under abatement is disputed: one view cites a proviso purportedly prohibiting credit of service tax on input services used in taxable services, while another describes CENVAT credits as pooled and generally usable to discharge service tax across services, except for an exclusion stated for GTA.