TaxTMI 
TaxTMI 
CENVAT CREDIT ON INPUT SERVICES UNDER 100% RCM
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....ENVAT CREDIT ON INPUT SERVICES UNDER 100% RCM<br> Query (Issue) Started By: - KARTHICK NAGARAJAN Dated:- 12-3-2017 Last Reply Date:- 13-3-2017 Service Tax<br>Got 7 Replies<br>Service Tax<br>Dear sir 1. We are manufacturer of exempted goods under excise duty (yarn, fabric and madeups). 2. we are exporting only madeups to foreign countries, where we claim the duty drawback 3. we sold yarn and fa....
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....brics within the country. here we cannot claim the dutydrawback my question is "can we claim the cenvat credit on input RCM service for the goods a) sold within the country b) sold outside the country Reply By Himansu Sha: The Reply: Sir, In my view you can avasil credit on RCM services for the the domestic clearancesd. But ad per policy circular no 9(re-2013)/2009-14 dated 30.10.13 o....
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....f Dgft the credit on input services not allowed. RCM is included in that category. For exempted goods as per rule 6 of CCR 2004 no credit isd available as you will not pay any duty. Thank you Reply By KARTHICK NAGARAJAN: The Reply: Himansu Sha Department is clear that, the manufacturer should not get double benefit of cenvat credit and dutydrawback, it means if ED paid is taken as cenvat cred....
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....it dutydrawback (provided on % of ED paid) will not be provided, visa a versa. but my case was ST paid on GTA services under RCM, as Cenvat Credit on Input services is different from the above. it is not a double benifit. i need to improve our disscussion Reply By Rajagopalan Ranganathan: The Reply: Sir, If the final product is exempt then you cannot avail the credit of duty paid on inputs, c....
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....apital goods and service tax paid on input services which are utilized for manufacture of the final product. In respect of final products exported you can claim the refund of credit of duty paid on inputs and service tax paid on input services through Customs, Central Excise and Service Tax Draw Back Rules, 1995. Reply By Rajagopalan Ranganathan: The Reply: Sir, In continuation of my reply, you....
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.... can claim the refund of credit of service tax paid by you under RCM as provided in rule 5 of Cenvat Credit Rules, 2004 since the GTA service is used for taking the export goods to the port of export which is 'place of removal' in your case. Reply By KASTURI SETHI: The Reply: I support the views of Sh.Ranganathan, Sir. Reply By KARTHICK NAGARAJAN: The Reply: my reply to Rajagopalan Ran....
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....ganathan sir, 1. I think, Cenvat Credit on input services under RCM is available to all business irrespective of manufacturers. so anybody, even a trader can claim CC under RCM. there is no question of manufacturing of exempted products. 2. under rule 5 refund of CC shall be allowed only to service provider not the service receipient, so no possible for refund. Reply By YAGAY AND SUN: The Reply....
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....: Also check Notification No. 41/2012-ST as amended from time to time to avail the Service Tax Refund on the input services used beyond the place of removal.<br> Discussion Forum - Knowledge Sharing ....