Shanmugam Mohan (Audit Accountant) 20 February 2014

Service tax on supply of tangible goods

Dear Sirs

We are providing service of supply of tangible goods to others. In some times we are getting the supply of tangible goods from a some limited company and then providing the service to others. They billing to us with service tax. We are also billing to others with service tax. For Example ours is ‘B’ Concern.

Mr A (Limited Company)Billing to me ‘B’(Partnership Firm) (10000+ ST 1236)= 11236

Ours (‘B’) Billing to ‘C’(Limited Company) (10500 + ST 1298)=11798

Whether it is possible to avail the CENVAT Credit of Rs 1236 and pay the balance of amount (1298-1236) of Rs.52.

Please clarify the same

We Best Regards

S.Mohan

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1 Replies

CA Archana Yadav (FCA) 21 February 2014

Dear S.Mohan,

Please mention the category under which you are billing and your vendor is billing.

Also there are notified services for which CENVAT cannot be availed, else all the service tax paid against the services received which is forming part of the business is allowed as CENVAT.

Hope this resolves your query.