ORGANISED by WIRC OF ICAI 8th August,2012CA RAJIV LUTHIA1 A candle loses nothing by lighting another candle

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ORGANISEDby

WIRC OF ICAI

8th August,2012 CA RAJIV LUTHIA

A candle loses nothing by lighting another candle.

INTENSIVE STUDY COURSE ON SERVICE TAX

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DISCUSSION IS EXCHANGE OF INTELLIGENCEARGUMENT IS EXCHANGE OF IGNORANCE

Presented By

RAJIV LUTHIA

CENVAT CREDIT RULES, 2004


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CENVAT CREDIT RULES,2004

Introduced w.e.f. 10th September,2004

Credit of service tax not available/utilizable in Jammu & Kashmir.

8th August,2012

MODVAT/ ST CREDIT RULES

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Prior to 10.9.2004

Manufacturer of Goods

Credit available of duty paid on

inputs/capital goods

Service provider

Credit available of service tax paid on

input services

CENVAT CREDIT RULES


Post 10.9.2004

Manufacturer of Goods

Credit available – duty/service tax paid on inputs/capital goods/input

services

Service provider

Capital Goods Means

Goods which are specified in certain chapters of 1st Schedule of CE Act,1944 ;

Pollution control equipment. Components, spares and accessories of

the goods specified above.Moulds and dies, jigs and fixtures. Refractories and refractory materials. Tubes and pipes and fittings thereof; and Storage tankMotor vehicle other than those falling under tarrif 8702, 8703, 8704,8711 & their chassis but including dumpers & tippers.

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Used

• In the factory of mfgr of final products But does not include equipment/ appliances used in office

• for generation of electricity for captive use within the factory

Chapter 82 Tools, hand tools, knives etc

Chapter 84 Machinery and mechanical appliance

Chapter 85 Electrical Machinery, Equipment and parts etc.

Chapter 90 Measuring, checking, precision or testing instruments

Hdg 68.05 & 68.04 grinding wheels & parts thereof

• For providing output service

OR


CA RAJIV LUTHIA 7

Dumpers, Tippers, Motor Vehicle other than those falling under tariff heading 8702, 8073, 8704, 8711 & their chassis e.g. cranes, forklifts, utility vehicle, ambulance etc.

8th August,2012

MOTOR VEHICLES COVERED

Tariff Heading

Description

8702 Motor vehicles for the transport of 10 or more persons including driver

8703 Motor cars & other motor vehicles principally designed for the transport of persons (other than 8702) including station wagons & racing cars

8704 Motor vehicles for transport of goods8711 Motor cycles (including mopeds) & cycles fitted with an auxiliary

motor, with or without side-cars.

CA RAJIV LUTHIA 8

Motor Vehicle designed for transportation of goods, their components, spares, accessories, chassis……….registered in name of service provider & used for

Providing output service of renting of motor vehicle; or

Transportation of inputs & capital goods for providing an output service or

Providing courier agency services

8th August,2012

CG MEANS….

Such Motor Vehicle NOT CG FOR A MANUFACTURER

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Motor Vehicle designed for carrying passengers, their components, spares, accessories, chassis ………. registered in name of service provider & used for

Transportation of passengers or Renting of such motor vehicle or Imparting Motor Driving Skills

8th August,2012

CG MEANS….

Such Motor Vehicle NOT CG FOR A MANUFACTURER

CA RAJIV LUTHIA 108th August,2012

WHICH MOTOR VEHICLE?….CG FOR WHOM?…

Vehicle CG FOR Manufacturer

CG For SP

Dumpers/Tippers/Motor Vehicles not falling under 8702,8703,8704,8711 & chassis

Motor vehicles used for transportation of goods

(for certain SP)

Motor vehicles used for transportation of passengers

(for certain SP)


CONDITIONS FOR ALLOWING CENVAT CREDIT…. Upto 50% of the credit is allowed in the FY in which CG is received in factory/premises & Balance in the subsequent year, if the possession of the asset remains with SP/mfgr................Rule 4(2)

SSI units can avail 100% of CENVAT in the same FY, subject to condition specified in notification for SSI units.....

Credit allowable even if CG are acquired on lease/hire purchase/loan agreement from financing company…………….Rule 4(3)

If the CG is removed as such in the same FY, then entire credit is allowed in the same FY.

Credit of additional duty levied U/r 3(5) of Customs tariff Act shall be allowed immediately on receipt of CG in the factory of manufacturer.

CONDITIONS FOR ALLOWING CENVAT CREDIT….

No CENVAT on part of value of CG which represents the amount of duty on which depreciation is claimed.............Rule 4(4)

Jigs, fixtures, moulds & dies sent by manufacturer to a job worker can avail credit on them.…………Rule 4(5)(b)

Inputs, CG partially processed sent to job worker for further process or manufacture etc. on maintenance of relevant records thereto & Input/CG received back in factory within 180 days…………Rule 4(5)(a)

No CENVAT Credit to be availed, if CG is exclusively used for purpose of mfg of exempted goods (other than exemption provided by way of notification granting exemption based upon value or quantity)...Rule 6(4)


CG REMOVED …….


Rule 3(5) & (5A)

Removed By whom Effect

Inputs or CG

as such mfgr or SP

Pay/reverse CENVAT credit taken except when removed (i) as free warranty of

product(ii) For providing output

service

CG After being used or waste or scrap

mfgr or SP

Higher of the following :a) Pay/reverse CENVAT

credit taken after reducing the prescribed %

b) Pay duty on transactional value

CG REMOVED….


Rule 3(5B)

Particulars Before put to use

By whom Effect

Inputs or CG

written off fully or partially or provision for the same is made in the books

Mfg or SP Pay/reverse CENVAT credit taken

If such Inputs/CG used subsequently by manufacurer/service provider........then entitled to take credit of Cenvat paid earlier

Input Means

Input means • all goods used in the factory by the manufacturer of the

final product; or• Any goods including accessories, cleared along with the

final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or

• all goods used for generation of electricity or steam for captive use; or

• all goods used for providing any output service;

BUT EXCLUDES...................8th August,2012 CA RAJIV LUTHIA 15

(A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol;

(B) capital goods except when used as parts or components in the manufacture of a final product;

(C) motor vehicles;(D) any goods, such as food items, goods used in a

guesthouse, residential colony, club or a recreation facility and clinical establishment, when such goods are used primarily for personal use or consumption of any employee; and

(E) any goods which have no relationship whatsoever with the manufacture of a final product.


INPUT EXCLUDES

• (F) any goods used for-• construction or execution of works contract of a building or

a civil structure or a part thereof; or• laying of foundation or making of structures for support of

capital goods,

except for the provision of service portion in the execution of works contract or construction service


INPUT EXCLUDES

CENVAT on Inputs/CG

Inputs should not be used wholly for exempted goods/service........Rule 6(1)

CENVAT Credit in respect of inputs/capital goods may be taken by SP when inputs/capital goods are received in the factory or premises of manufacturer/SP………….OR delivered to such service provider, subject to maintenance of documentary evidence of delivery & location of the inputs/capital goods..............Rule 4(1), 4(2)(a)

Erstwhile provisions:-There was requirement for receipt of inputs & capital goods in the premises of SP which is now dispensed with.

Input Service means

Any service used by provider of taxable service for providing an output service; or

Any service used by manufacturer in relation to manufacture of final products and clearance of final products up to the place of removal.and includes services used in relation to modernization, renovation or repairs of a

factory, premises of provider of output service or an office relating to such factory or premises,

advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching

and training, computer networking, credit rating, share registry, and security, Business Exhibition, Legal Services

inward transportation of inputs or capital goods & outward transportation up to the place of removal.

BUT EXCLUDES..................................................


Input Service…Exclusion

Services in relation to outdoor catering, beauty treatment, health services, cosmetic & plastic surgery,

membership of a club, health & fitness centre, life insurance, health insurance and travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee.

Works Contract Services or Construction Services used for

• Construction or execution of works contract of a building or a civil structure or a part thereof; or

• Laying of foundation or making of structures for support of capital goods……..except used for providing Works Contract Services or Construction Services


Input Service…Exclusion

Services of renting of motor vehicle...... unless motor vehicle is capital goods


Input Service (IS) IS FOR Manufacturer

IS For SP

IS of Renting of Dumpers/Tippers/Motor Vehicles not falling under 8702,8703,8704,8711 & chassis

IS of Renting of Motor vehicles used for transportation of goods

(for certain SP)

IS of Renting of Motor vehicles used for transportation of passengers

(for certain SP)

Inputs Service…Exclusion

Services of general insurance business, servicing, repair and maintenance related to motor vehicle which is not capital goods…..except

o Used by manufacturer of motor vehicle

o Insurance Company in respect of vehicle insured


CONDITIONS FOR ALLOWING CENVAT ON IS


IS should not be used for wholly exempted goods/services.......Rule 6(1)

Credit on Invoice raised prior to 31/3/11....

Allowed on or after the day on which payment for value of input service & service tax thereon is made

CONDITIONS FOR ALLOWING CENVAT ON IS


Invoice raised after 1/4/2011

•Day on which invoice, bill or challan is received.......Rule 4(7)

General provision

•Day on which payment made of ST along with value of service charges

ST payable.. reversal charge

mechanism

CONDITIONS:-in case the payment for value of IS & ST thereon is not made within 3 months

from the date of invoice/bill/challan, the manufacturer/SP to pay an amount equal to CENVAT Credit availed on such input service.

Later, Manufacturer/SP is entitled to take such CENVAT Credit on payment of value of IS & ST thereon.

In case of credit note or refund of value of IS & ST thereon, CENVAT credit to be reversed /paid on or before the due date of relevant Month/Quarter

POINT AT WHICH CENVAT CREDIT IS AVAILABLE

•Receipt of goods in premises or delivery made subject to documentary evidence of delivery & location of inputs

Capital Goods

•Receipt of goods in premises or delivery made subject to documentary evidence of delivery & location of inputsInput

•invoice/bill issued before 1/4/11..... Payment of value of service & ST thereon•Invoice/bill issued after 1/4/11....... Date on which invoice is received, subject to conditions•If under reverse charge..When payment made

Input Service


CA RAJIV LUTHIA

(1) Taxable service which is exempt from the whole of the ST,(2) Service, on which no service tax is leviable (3) Taxable service whose part of value is exempted on the condition that no credit of inputs and input services used for providing such taxable service, shall be taken;But shall not include a service which is exported in terms of rule 6A of the Service Tax Rules, 1994)

“Output Service” means ….. Any taxable service provided by service provider located in taxable territory

but doesn’t include Service specified in Section 66D of the Act…..i.e. Negative List Where the whole of ST payable by recipient of service

“Exempted Service” means…..

“Exempted Goods” means….. Excisable goods which are exempt from the whole of the duty of excise

leviable thereon, & Includes goods which are chargeable to “Nil” rate of duty & Goods in respect of which benefit U/n 1/2011-CE is availed or specified

entries in notification no. 12/2012-CE is availed26

8th August,2012

CA RAJIV LUTHIA

Specified duties/taxes eligible as CENVAT credit

• Basic Excise Duty (except duty paid U/n 1/2011-CE)• Special Excise Duty• Additional duty on Textiles and Textiles articles• Additional duty on ‘goods of special importance’• Countervailing duty on imports• National Calamity Contingent duty• Additional duty of leviable U/s.3(5) of Custom tariff

Act,1985– VAT (SP not eligible)• Additional duty of excise on tea• Service tax paid under Sec 66,66A,66B• Ed cess on excisable goods/service tax• S& H Ed Cess on excisable goods/service tax• Additional duty of Excise on pan masala and tobacco

products

278th August,2012

CENVAT credit can be utilised for following payments

Any excise duty on final product; CENVAT Credit taken on input if such inputs are removed as such; CENVAT Credit taken on capital goods if such capital goods are removed

as such; Amount under Rule 16(2) of the Central Excise Rules, 2002. (payment of

CENVAT on account of sales return) Service Tax on any output service.

While paying duty/tax, the CENVAT Credit shall be utilized only to the extent of such credit available on the last day of month or quarter as the case may be for payment of duty/tax relating to the month or qtr.

Provided CENVAT credit shall not be utilized for payment of duty on goods for which exemption under notification no.1/2011-CE is availed. (Goods on which 1% duty is levied)

CENVAT cannot be used for payment of ST in respect of services where the person liable to pay tax is the service recipient


Utilization of CENVAT Credit


Nature of CENVAT Credit

Can be utilized against liability of

Excise Duty Service Tax EC on Duty/ST

SHEC on Duty/ST

Int/Penalty

Excise Duty

Service Tax

EC on Duty/ST

S& H Ed Cess on Duty/ST

Transfer of Credit…Rule 10

• In case of shift of factory or transfer of business on account of change in ownership or sale, merger, amalgamation, lease or transfer, the Transferee is entitled for unutilized credit of sold/merged/amalgamated/leased factory provided

• Stock of inputs/WIP is also transferred along with factory or ownership ;&

• input/capital goods on which credit is availed are duly accounted for to the satisfaction of AC/DC


Obligation…Rule 6


Rule 6(1)…….NO CENVAT to be allowed on qty of inputs/inputs services used in mfg of EG or for providing ES except as provided in Rule 6(2)

Rule 6(2).................... Separate A/c’s to be maintained for receipt, consumption, inventory etc for Inputs/Input Service........ CENVAT allowed only for Inputs/input Service used in relation to mfg of dutiable goods or for providing taxable service

Obligation…Rule 6


Rule 6(3).... NOTWITHSTANDING anything contain in Rule 6(1) or 6(2)..... assessee opts not to maintain separate A/c’s shall follow any 1 option:-

i. Pay 6% on value of exempted goods & services ......• In case ED is paid on EG, the same shall be reduced from 6%• If any abatement in respect of taxable services is granted with a

condition for non availment of CENVAT Credit. the amount to be paid shall be 6 % of the value so exempted

• In case of transport of goods/passenger by rail, the amount to be paid shall be 2 % of the value so exempted

ii. Make proportionate reversal as per Rule 6(3A) (proportionate reversal)

iii. Hybrid option: maintain separate A/c’s for Inputs & make proportionate reversal for Input Services

Obligations of provider of taxable & exempted services


Option available for SP of taxable & exempted Services/goods

Maintain separate A/c’s for receipt, consumption

& inventory of input & input service

Not to maintain separate A/c’s but shall follow

either of following options

Pay: 6% on Mfg of EG & Exempted Service

Reverse/pay: the CENVAT attributable to the Ip/IS used in relation to mfg of EG/providing of ES as per condition& procedure Under sub-rule 6(3A)

Rule 6(1)……. No CENVAT to be allowed on qty of Inputs/input service exclusively used in mfg of exempted goods or provision of exempted service.

Hybrid option :- Separate A/c’s for Inputs &Reversal for Input Service

Conditions for option of proportional reversal

The provider of output service shall intimate in writing in the beginning of F.Y. to the superintendent of CE giving the following particulars namely :-

name, address and registration No. of the manufacturer of goods or provider of output service;

date from which the option under this clause is exercised or proposed to be exercised;

description of dutiable goods or taxable services; description of exempted goods or exempted services; CENVAT credit of inputs and input services lying in balance as on

the date of exercising the option under this condition;

Option once exercised can not be withdrawn during the remaining part of financial year.

Rule 6(3A)(b) & (c) provides the mechanism for determining the amount equivalent to CENVAT Credit attributable to inputs/input service used in relation to provision of exempted services.

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RULE 6(3A)… conditions for option of proportional reversal under rule 6(3)(ii)

Reversal mechanism (for input service)………

Calculation to made for every month (Provisional):-

Exempted Services/Goods (for preceding FY) CENVAT on IS

Exempted Services/Goods + taxable

services/Goods (For preceding FY)


RULE 6(3A)… conditions for option of proportional reversal under rule 6(3)(ii)

Reversal mechanism (for input service)………

Calculation to made for Current F. Y. (Final calculation):-

Exempted Services/Goods (for Current FY)

CENVAT on IS

Exempted Services/Goods + taxable

services/Goods (For Current FY)


RULE 6(3A)… conditions for option of proportional reversal

the short paid amount arising due to the reversal mechanism provided under Rule 6(3A) (b) & (c) to be paid on or before 30th June of the succeeding financial year.

the interest rate for payment of short paid amount after 30th June is 24% per annum.

the excess amount arising due to the reversal mechanism provided under Rule 6(3A) (b) & (c) to be adjusted suo motu, by taking credit of such amount.

SP shall intimate to the jurisdictional superintendent of Central Excise, within a period of 15 days from the date of payment as per under (Rule 6(3A)(d) or adjustment of the excess payment in the CENVAT credit (Rule 6(3A)(f) ….. Information in prescribed format


RULE 6(3A)… conditions for option of proportional reversal

In case of CENVAT attributable to exempted goods/service cannot be determined due to no dutiable goods manufactured/ taxable service provided in preceding year…….The Reversal exercise to be done at the end of financial year and not on monthly basis

Rule 6(3B) provides that a banking company & a financial institution including NBFC providing services by way of extending deposits, loans or advances to pay an amount equal to 50% of CENVAT credit availed on inputs & input services every month.

Rule 6(3D) provides that in cases where any abatement in respect of taxable services is granted with a condition for non availment of CENVAT Credit, payment of amount under Rule 6(3) shall be deemed to be CENVAT Credit not taken for the purpose of exemption notification.

38CA RAJIV LUTHIA8th August,2012

“Value” Shall have the same meaning as assigned to in section 67 of

The Finance Act, 1994

In case of trading, the value for the purposes of Rule 6(3) & Rule 6(3A) shall be higher of :- the difference between the sale price & the cost of goods sold

(determined as per the generally accepted accounting principles without including expenses incurred towards their purchases) or

10% of cost of goods sold

In case of trading in securities, value shall be higher of Difference of Sale Price & Purchase Price of securities ;or 1 % of the Purchase price


“Value”

Value shall not include value of service by way of extending deposits, loans or advances if the consideration is represented by way of interest or discount.

In case of availing option under Rule 6 (7), (7A), (7B) or (7C) of the STR, 1994, the value shall be the amount of value which when calculated @ rate U/s 66B resulted into same service tax amount.


Other conditions

Rule 6(4) provides that the capital goods shall not be exclusively used for purpose of manufacture of the exempted goods (other than vide notification where exemption is granted based upon value or quantity)

Rule 6(6A) inserted whereby provision of Rule 6(1) to Rule 6(4) are not applicable in case the taxable services are provided without payment of service tax to a developer/unit of SEZ for their authorized operations………retrospectively amended w.e.f. 10th February, 2006 vide Finance Act, 2012

Rule 6(6)…..Provision of Rule 6(1) to Rule 6(4) are not applicable in case of excisable goods removed without payment of duty under certain circumstances


Other conditions

Rule 6(7)… Provision of Rule 6(1) to Rule 6(4) are not applicable in case in case the taxable services are provided without payment of service tax to a developer/unit of SEZ for their authorized operations or when a service is exported

Rule 6(8)……Service for the purpose of Rule 6 shall not be treated as exempted service when:

Service is export of service in view of Rule 6A of Service Tax Rules, 1994 and payment for which received in CFE; and

Even If CFE not received within 6 months or extended period granted by RBI from date of provision of service


Documents for availing CENVAT credit• Invoice by manufacturer/importer/1 stage dealer/2 stage dealer• Invoice/Bill/challan issued by provider of input service• under reverse charge GAR-7 Challan• Invoice/bill/challan issued by Input Service Distributor• Bill of Entry• Supplementary invoice issued by manufacturer/ importer of

Inputs /CG in terms of CE Rules, 2002 in case of additional excise duty except when such amount became recoverable on account of short levy/non levy on grounds of fraud, collusion etc with intent to evade tax

• Supplementary invoice issued by SP except when such amount became recoverable on account of short levy/non levy on grounds of fraud, collusion etc with intent to evade tax

• The invoices/Bill/challan should contain all the details prescribed under CER, 2002 & STR, 1994.

• In absence of all such details, AC/DC as the case may be, may allow the CENVAT credit after being satisfied 43

Interest Rule 14 amended w.e.f 17th March, 2012, whereby the

manufacturer/service provider to pay interest only when the CENVAT credit has been taken and utilized wrongly or has been erroneously refunded.

HON’BLE SUPREME COURT IN THE CASE OF UOI VS IND-SWIFT LABORATORIES LTD 2011-TIOL-21-SC-CX

held that the interest is payable from date of taking Credit & not from the date when the CENVAT credit is utilized.

Rule 14 of CCR, 2004 provides that where CENVAT credit has been “taken” OR “utilized wrongly” OR “has been erroneously refunded”, the same along with interest would be recovered from the manufacturer or the provider of the output service.

On the happening of any of the three aforesaid circumstances such credit becomes recoverable along with interest from the date of availment of CENVAT Credit.

Relying on the above decision of Apex court, CBEC has issued similar clarifications vide circular No.942/03/2011-CX Dated 14th March, 20118th August,2012 CA RAJIV LUTHIA 44

Interest

• HON’BLE Karnataka High Court in the case of CST Vs. Bill Forge Pvt Ltd 2011 (TIOL) 799 held that • Credit of excise duty in the register maintained for the said

purpose is only book entry. • Before utilization of such credit, the entry has been

reversed, it amounts to not taking of credit. • Interest is compensatory in character, and is imposed

on an assessee, who has withheld payment of any tax, as and when it is due and payable.

• Interest U/s 14 not payable if credit reversed before utilization of CENVAT credit.


Returns

• Manufacturer – • monthly return within 10 days from the end of the month.• However, if manufacturer is availing exemption under

notification based on value/quantity of clearance in a financial year, he shall file quarterly return

• SP-• half yearly return in Form ST-3 within one month of the end

of half year• ISD-

• half yearly return Form ST-3 within one month of the end of half year

• Revised return to be filed within 60 days from the date of submission of original return


Penalties

Particulars of contravention In respect of Penalty

Availment or Utilization of CENVAT Credit wrongly or in contravention of any provisions

Inputs/CG/IS Goods liable for confiscation & Penalty not exceeding the amount of duty/tax or Rs.2,000/- whichever is higher.

Wrong availment/ utilization of CENVAT Credit due to fraud, collusion, willful misstatement etc with intent to evade payment of duty

Inputs/CG/IS Over and above the penalty stated in item no.1, the penalty U/s.11AC of The Central Excise Act, 1944 shall be levied i.e. 100% of the duty sought to be evaded by the manufacturer.


Penalties

Particulars of contravention

In respect of Penalty

Wrong availment/ utilization of CENVAT Credit due to fraud, collusion, willful misstatement, suppression or contravention of any provision with intent to evade payment of tax

Inputs/CG/IS Over and above the penalty stated in item no.1, the penalty U/s.78 of The Finance Act, 1994 shall be levied i.e. 100% of the service tax sought to be evaded by the service provider.

General Penalties- For contravention of any provisions of CCR,2004 for which no penalty is provided

Upto Rs 5,000/-


Input Service Distributor Means an office of the manufacturer or producer of

final products or provider of output service which receives

invoice towards IS…….. for the purpose of distributing the credit of ST paid on the said services to such manufacturer or producer or provider, as the case may be.

CONDITIONS FOR DISTRIBUTING CREDIT:

The credit distributed against a document does not exceed the amount of service tax paid thereon

No distribution allowed in respect of ST attributable to services used in unit exclusively engaged in manufacture of exempted goods or providing exempted service.


Input Service DistributorCONDITIONS FOR DISTRIBUTING CREDIT:

Credit of service tax attributable to service used wholly in a unit shall be distributed to that unit only

Credit of service tax attributable to service used in more than one unit shall be distributed pro-rata on the basis of the turnover during the relevant period of the concerned unit to the sum total turnover of all the units to which the service relates during the same period

In case of assessee do not have any total turnover in the said period, the ISD shall distribute credit only after the end of such period wherein the total turnover of its unit is available

Relevant period shall be the month previous to the month during which the CENVAT is distributed.


Input Service Distributor

Total turnover to be determined as per Rule 5 (i.e refund to exporters)

Sum of :- All excisable goods cleared including exempted goods, dutiable goods

& excisable goods exported Export turnover & the value of all other services All inputs removed U/r 3(5) against an Invoice

Export turnover of service = pymt rcd during relevant period + export services whose provision has been completed for which payment had received in advance earlier – advance received for which the provision of service has not been completed during the relevant period.

Value of other services = as per Rule 6(3)


REFUND OF CENVAT

• The manufacturer who clears final/intermediate product for export without payment of a duty under bond or undertaking which is cleared for export or provider of output service which is exported without payment of Service Tax shall be allowed refund of CENVAT Credit as determined by the formula.

• Refund amount =

(Export Turnover of goods + Export Turnover of Service) * NET CENVAT

Total turnover• The procedure & conditions for filing refund claim are prescribed U/n.

27/2012-CX (NT) dated 20th June, 2012

• Refund claim is required to be filed within a period of 1 year.

• • No refund shall be allowed if claim for drawback under customs & CE

Duty Drawback Rules, 1995 is allowed.• 528th August,2012 CA RAJIV LUTHIA

REFUND OF CENVAT to SP providing services taxed on reverse charge basis

• A provider of service providing services notified U/s. 68(2) & being unable to utilize the CENVAT credit availed on Inputs & Input Services for payment of service tax on such output services,

• shall be allowed refund of such unutilized CENVAT credit subject to procedure, safeguard, conditions & limitation as may be specified


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CA. Rajiv LuthiaR.J.Luthia & Associates

Chartered Accountants

Ph : 2564 1553/2569 4989Email: [email protected]
