Transfer of CENVAT Credit (Rule 10) – If a manufacturer of the final products shifts his factory to another site or the factory is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the factory to a joint venture with the specific provision for transfer of
Input Service Manufacturer as well as service provider will be eligible to get Cenvat credit of ‘input services’. Rule 2(1) of Cenvat Credit Rules reads as follows – (i) Insofar as a service provider is concerned, the term ‘input service’ means any service used by a provider of taxable service for providing an output service.
General highlights of the scheme are as follows : Credit of duty paid on input and input services The Cenvat scheme is principally based on system of granting credit of duty paid on inputs and input services. A manufacturer or service provider has to pay excise duty and service tax as per normal procedure on
Rule No. Brief Comments 2(d) ‘Exempted goods’ means goods which are exempt from whole of duty of excise leviable thereon and includes goods which are chargeable to ‘Nil’ rate of duty. 2(e) “Exempted services” means taxable services which are exempt from the whole of the service tax leviable thereon, and includes services on which
Excise and Service tax are central taxes, expected to be consumption based taxes to the extent practicable. Till the goods or service is finally consumed, the burden of excise duty and service tax is passed on to next buyer, who gets credit of the tax and excise duty paid by the supplier/ service provider. Thus,