Credit against service tax for excise paid.

[Guest]

We are electrical contractor Sales & Service providers. (We have VAT registration & Service tax registration) 

 

We have one issue as below.

 

We have service tax registration. We do not fall under excise as not manufacturer.We purchase many times excise-able goods. We sale it to our clients.And we provide services & claim service tax to our clients

 

Can we get this excise amount in credit against service tax.

 

Pls guide us in detail. 

[YAGAY and SUN]

While selling excisable goods as such, you actually fall under some sort of Trading activities.  If you intent to pass on the benefit of CENVAT credit to your clients, then, you need to get yourself as trader under either First Stage dealer or Second Stage Dealer.

Howevder, CENVAT credit is not allowed on the trading activities.

[KIRTIKUMAR PUROHIT]

No; You can not  get excise amount credit against service tax. If intend to passon such credit you have to take registration as Dealer in Excise Department

AI Summary

CENVAT credit cannot be used to offset service tax; dealer registration required to pass the excise benefit. Electrical contractors purchasing excisable goods for resale and also providing services cannot set off excise duty paid on those goods against service tax; trading activities are excluded from CENVAT credit, and passing the benefit requires registration as an excise dealer.