Just a moment...

Report
FeedbackReport
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 806
- 0 -

Payment of service tax through cenvat

Date 05 Jun 2008
Replies1 Answers
Views 1317 Views
Asked By

XYZ Ltd.is an IT Services Company, providing different taxable output services and also exporting certain Services. Till March 31,2008, we have been utilizing 20% Cenvat credit. With effect from April 01,2008, we would like to follow option wherein provider of output services shall pay an amount equal to 8% of the Value of exempted services provided. Query : 1. Whether the unutilized balance amount available in Cenvat Credit as on March31, 2008, can be utilized for payment of service tax for the services to be provided on and after April 01,2008?. 2. Whether export of services is treated as exempted or excluded Services; consequently whether service tax is payable @ 8% on value of services exported?. 3. In case the answer to query 1 is in the affirmative, then what process needs to be followed to avail the unutilized Cenvat Credit and whether any written communication needs to be sent to the Central Excise Department?

1 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jun 7, 2008
1.

With regard Query 1, though there is no provision under CENVAT Rules restricting adjustment of unutilised balance, the present view of the department is such adjustment is not possible if service provider follows Rule 6(3). Best possible suggestion is to retain the opening balance as it is and file a letter in this regard with the Dept with a right to adjust the same in future. With regard to Query 2, export of service is not treated as 'exempted service' and hence VALUE need not be included in 'exempted service' for the purpose of Rule 6(3). In other words, CENVAT on input services utilised in EXPORT services is eligible for full utilisation.

Old Query - New Comments are closed.

Hide
Recent Issues