Provisions for availing cenvat credit for a manufucturer cum Service tax provider, Service Tax

[sunil mehta]

What are restrictions for a manufucturer cum Service tax provider in  Cenvat Credit Rule, 2004?(in context of input services credit taken as a manufacturer but utilsed in payment of ser.tax on commission income) i.e. what 'user test' we have to follow assuming that output services are taxable & finished goods mgf. are excisable?

Posts / Replies

[Vijay Chitte]

Dear Sunil, If you are manufacturer cum Service provider then you will have to maintain serparate records for taking and utilisation of cenvat credit. "As per defination of input service means, any service used by provider of taxable service for providing an output service", taking the veiw of input service defination, it is advisable that do not follow the procedure of input services credit taken as a manufacturer and utilized againt in payment of service tax on commission income, Becuase if input services are used in the manucturer fo final product you can utilize this serivce tax credit only on excise duty liabilty subject to the comliance of CC rule. Vijay Chitte-Claris