TaxTMI 
TaxTMI 
Ultilisation of cenvat for payment of service tax.
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....ltilisation of cenvat for payment of service tax.<br> Query (Issue) Started By: - awadhesh jha Dated:- 8-12-2006 Last Reply Date:- 14-12-2006 Service Tax<br>Got 3 Replies<br>Service Tax<br>we are a authorized motor vehicle dealer.we purchase the vehicles from the manufacturer and sell it to customers.we also purchase equipments for our workshop.we are liable to pay service tax on the vehicles serv....
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....iced.can we avil the cenvat credit to pay the service tax? in which manner? Reply By Surender Gupta: The Reply: The equipments you purchase for providing workshop services are eligble for cenvat credit. Reply By Madhukar N Hiregange: The Reply: Buying and selling of vehciles is not subjected to servcie tax. However VAT maybe applicable. NO credit on vehicles is admissible for this category. Howev....
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....er equipments purchased for servicing are capital goods eligible for credit on the excise duty paid based on valid excise paying documents. The credit of CG would be available upto 50% in the year of receipt and balance in the subsequent years where the CG is still in possession. Reply By Narender Kumar Garg: The Reply: The liability to pay service tax will be arise. Because we have already sale a....
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.... vehicle and we have already charged vat at the time of sale. In my opinion, service tax will be charged at the time of serviced of the vehcile. However it may be charged when we are charged the cost of our services and it will not be charged at the time of free services.<br> Discussion Forum - Knowledge Sharing ....