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A

Project Report On

CENVAT

Submitted to

Prof V.K. Sapovadia,

Shanti Business School, Ahmadabad

PGDM Trimester III (Batch 2010-12)

Submitted By

Anuj kokra

Bhavesh khokhariya

Jagdish sangani

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INDEX

SR.NO. PARTICULAR PG.NO.

1. TAXATION 3

2. CANVAT 3

3. CENVAT Rules 4

4. Requirement to register for Indian CENVAT 6

5. MODVAT and CANVAT 7

6. The changes in CENVAT credit rules 8

7. Condition for allowing CENVAT credit 14

8. Refund of CENVAT credit 16

9. Bibliography 17

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Taxation

India has a well developed tax structure. The power to levy taxes and duties is distributed among

the three tiers of Government, in accordance with the provisions of the Indian Constitution. The

main taxes/duties that the Union Government is empowered to levy are:- Income Tax (except tax

on agricultural income, which the State Governments can levy), Customs duties, Central Excise

and Sales Tax and Service Tax. The principal taxes levied by the State Governments are:- Sales

Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise

(duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-

agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local

Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods

for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges

for utilities.

CENVAT :-

Cenvat, or the CentralValue Added Tax, is a component of the tax structure employed by many

countries in the western section of Europe. The inspiration for Cenvat is derived from a tax

system that is generally referred to as VAT, or aValue Added Tax.Both Cenvat and VAT are

designed with the express purpose of minimizing a cascading effect when it comes to taxes on

income, goods and services, and other forms of tax revenue. The aim of Cenvat is to aid in

maintaining a tax structure that is considered equitable for both the citizens incurring the tax and

the government that is collecting the tax revenue.

One notable example of Cenvat can be found in India. Originally designated as a modified valueadded tax, this approach placed some limits on the type of taxation that could occur on goods

used in the manufacturing process of finished consumer products. Modvat was later designated

as Cenvat, and continued to function as a means of promoting industry within the country while

still receiving some form of tax revenue from the effort.

It is helpful to think of Cenvat as an incentive that encourages the production of goods within the

country, rather thanoutsourcing the production to countries where the economic and tax climate

is more favorable. By providing a credit on the taxes associated with materials used in the

creation of finished goods, the government makes it more attractive for manufacturers to

maintain operations within the country. This of course leads to the creation of more jobs for the

citizens within the community and provides income for the purchase of products within the

country. By reducing the tax burden for the end user of the materials, Cenvat opens the door to a

more stable economy within the country, and a betterstandard of living for its citizens.

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Under the best of circumstances, the application of Cenvat can accomplish three goals. First, the

structure for Cenvat requires a tax collection procedure that is fairly transparent and easy to

follow. Second, the benefits associated with Cenvat help to cut down ontax evasion and creative

bookkeeping. Last, the use of Cenvat ultimately leads to an overall increase in collected tax

revenues by keeping more citizens employed and thus able to pay taxes onsalary and wages.

CENVAT Rules :-

1. CENVAT Rules were notified vide notification No. 11/2000-CE(NT) dated 1stMarch,

2000 and they were to come into force from 1.4.2000. Since then, we have receivedreferences from the Commissioners as also from trade and industry, seeking clarification

on certain aspects.

2. We have examined these references. Some modifications have now been carried out inthe CENVAT rules and the CENVAT rules have now been notified vide notification No.

27/2000-CE(NT) dated 31stMarch, 2000. These come into force w. e.f 1

stApril, 2000.

3. The definition of " has been revised. The revised definition is comprehensive enough to

specifically include components, spares and accessories as also other capital goods like

moulds and dies, refractories and refractory materials etc. It may be clarified that thecomponents, spares and accessories may fall under any Chapter but they should be

components, spares and accessories of the goods specified in clause (a)(I) of rule 57AA.

4. It may also be clarified that even air-conditioners and refrigerating equipment and

computers would be eligible to CENVAT credit as capital goods. The only condition isthat the manufacturers should use them in the manufacture of final product. Clearly,

therefore, such of the goods which are used in the offices of the factory are not eligible toCENVAT credit. For example, an air-conditioner used in the office premises or a

computer used in the office premises of the factory shall not be eligible to CENVAT

credit.

5. Some doubts have been raised whether CENVAT credit would be admissible on the part

of the input that is contained in any waste, refuse or bye product. In this context it isclarified that CENVAT credit shall be admissible in respect of the amount of inputscontained in any of the aforesaid waste, refuse or bye product. Similarly, CENVAT

should not be denied if the inputs are used in any intermediate of the final product even ifsuch intermediate is exempt from payment of duty. The basic idea is that CENVAT credit

is admissible so long as the inputs are used in or in relation to the manufacture of finalproducts, and whether directly or indirectly.

6. A specific provision has now been made if the inputs or capital goods are cleared to a jobworker. It has been provided that they should be received back within 180 days. If they

are not received, the manufacturer shall debit the CENVAT credit attributable to such

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inputs or capital goods, otherwise it will be an offence. However, the manufacturer shall

be entitled to take CENVAT credit as and when the goods sent to the job worker are

received back. If part of the goods are received back within 180 days and the rest of thegoods are received back after 180 days, the obligation for debiting the credit shall arise

only in respect of CENVAT credit attributable to that part which is not received within

180 days.

7. Provision has also been made for permitting the CENVAT credit when the inputs or

capital goods are purchased from the first stage dealer or from the second stage dealer.

8. These dealers should be registered under rule 52AA of the Central Excise Rules. Theother procedural requirements in respect of first stage dealer and second stage dealer will

continue as in the case of modvat rules.

9. In the case of capital goods, the CENVAT rules do not provide installation of capitalgoods as a pre-requisite for taking CENVAT credit. The credit can be taken as and when

the capital goods are received in the factory. For such capital goods which were received

prior to 1.4.2000 but not installed up to 1.4.2000 also, the CENVAT credit wold also beadmissible. It may, however, be noted that in respect of all capital goods whether

received on or after 1.4.2000 or those that were received prior to 1.4.2000 but not yet

installed, the condition that CENVAT credit only up to 50% of the total admissible

amount would be available in the financial year 2000-2001 would apply. The balance ofthe CENVAT credit in respect of such capital goods can be taken in a financial year

subsequent to 2000-2001.

10.CENVAT credit shall also be admissible in respect of additional excise duty payable

under the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 and the

additional duty of excise payable under the Additional Duties of Excise (Goods of

Special Importance) Act, 1957. The credit of equivalent "CVD component" on importsshall also be admissible. However, such credit can be used only for payment of the

respective kind of additional duty on the final product.

11.Provision has also been made for dealing with credit in relation to inputs used in the

manufacture of final products which are exported. These provisions are on the same lines

as in the case of modvat rules.

12.In the CENVAT scheme, the documents on which CENVAT credit can be taken have

been prescribed to enable verification, where needed by the department. The

admissibility of the amount of CENVAT credit should be discernible from the records of

the manufacturer, including the payment made to the sellers of inputs and capital goodswere purchased and were used by him for the intended purpose.

2. You are requested to kindly impress upon the officers to go through the CENVAT

rules and apply them in the spirit the CENVAT scheme has been announced by theFinance Minister. Provisions like filing of declaration of inputs and capital goods

have been dispensed by way of simplification. The intention and the expectation is

that CENVAT rules would reduce the area of disputes and litigation. You arerequested to kindly keep aspect in mind and impress upon this policy objective to

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field officers. In case of any doubt, the matter should be resolved at your level rather

than taking recourse to any hurried issue of show cause notice. In case you feel that

any instructions or clarification is needed from the Boards office to resolve any doubtor conflict, you may kindly refer the matter, so that the Board can issue the necessary

instructions for the sake of ensuring uniformity in their application.

12. As regards the monthly returns, separate instructions would follow soon.

Requirement to register for Indian VAT, CENVAT and

service tax

For foreign companies making goods in India, there may be a statutory obligation to register forCENVAT. Similarly, a VAT registration may be required on CST depending on the nature of

the goods and the State(s) involved. For Service Tax, the recipient generally records the tax onbehalf of the foreign supplier under the 'reverse charge' mechanism.

In many cases, the non-resident trader must appoint a fiscal representative for tax reporting

purposes.

CENVAT or Excise Tax Structure for Automobile Industry India

Types of Excise Duties

Basic Excise Duty: This is the duty livable under First Schedule to the Central Excise Tariff Act,

1985 at the rates mentioned in the said Schedule.

Special Excise Duty: This is the duty livable under Second Schedule to the Central Excise Tariff

Act, 1985 at the rates mentioned in the said Schedule. At present this is livable on very few

items.

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Basic Central VAT (CENVAT) or Excise Tax Structure for Automobiles

Year

Commercial

Vehicles

MUVs Cars

2 Wheelers

3 Wheelers Unit 75 CC > 75CC

2001-02 16 32 32 16 16 16 %

2002-03 16 32 32 16 16 16 %

2003-04 16 24+1* 24+1* 16+1* 16+1* 16 %

2004-05 16 24+1* 24+1* 16+1* 16+1* 16 %

2005-06 16 24+1* 24+1* 16+1* 16+1* 16 %

2006-07 16 24+1* 24/16**+1* 16+1* 16+1* 16 %

2007-08 16 24+1* 24/16**+1* 16+1* 16+1* 16 %

Source: Society of Indian Automotive Manufacturing (SIAM) - Based on Government of India

Notifications, Additional higher & Secondary Education Cess of 1%, *National Calamity

Contingent Duty (NCCD) of 1 %, **16% on cars (up to 4000mm in length &1200cc for petrol &

up to 4000mm in length & 1500cc for diesel) and 24% for rest

National Calamity Contingent Duty (NCCD): Normally known as NCCD. This duty is levied

as per section 136 of the Finance Act, 2001, as a surcharge on specified goods.

Excise Duties and Ceases Leviable under Miscellaneous Act: On certain specified goods, in

addition to the aforesaid duties, prescribed rate of excise duty and cess is also leviable.

Education Cresson excisable goods is levied in addition to any other duties of excise chargeable

on such goods, under the Central Excise Act, 1944 or any other law for the time being in force.

MODVAT and CENVAT

Taxation of inputs, like raw materials, components and other intermediaries has a number of

limitations. In production process, raw material passes through various processes stages till a

final product emerges. Thus, output of the first manufacturer becomes input for second

manufacturer and so on. When the inputs are used in the manufacture of product `A', the cost of

the final product increases not only on account of the cost of the inputs, but also on account of

the duty paid on such inputs. As the duty on the final product is on ad valorem basis and the final

cost of product `A' includes the cost of inputs, inclusive of the duty paid, duty charged on

product `A' meant doubly taxing raw materials. In other words, the tax burden goes on increasing

as raw material and final product passes from one stage to other because, each subsequent

purchaser has to pay tax again and again on the material which has already suffered tax. This is

called cascading effect or double taxation.

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This very often distorted the production structure and did not allow the correct assessment of the

tax incidence. Therefore, the Government tried to remove these defects of the Central Excise

System by progressively relieving inputs from excise and countervailing duties. An ideal system

to realize this objective would have been to adopt value added taxation (VAT). However, on

account of some practical difficulties it was not possible to fully adopt the value added taxation.

Hence, Government evolved a new scheme, `MODVAT' (Modified Value Added Tax).

MODVAT Scheme which essentially follows VAT Scheme of taxation. i.e. if a manufacturer A

purchases certain components(raw materials) from another manufacturer B for use in its product.

B would have paid excise duty on components manufactured by it and would have recovered that

excise duty in its sales price from A. Now, A has to pay excise duty on product manufactured by

it as well as bear the excise duty paid by the supplier of raw material B. Under the MODVAT

scheme, an Original Equipment Manufacturer can take credit of excise duty paid by First Tier

and Second Tier suppliers. It amounts to excise duty only on additions in value by each

manufacturer at each stage.

MODVAT Scheme ensures the revenue of the same order and at same time the price of the final

product could be lower. Apart from reducing the costs through elimination of cascade effect, and

bringing in greater rationalization in tax structure and also bringing in certainty in the amount of

tax leviable on the final product, this scheme will help the consumer to understand precisely the

impact of taxation on the cost of any product.

Subsequently, MODVAT scheme was restructured into CENVAT (Central Value Added Tax)

scheme. A new set of rules 57AA to 57AK , under The CENVAT Credit Rules, 2004, were

framed and whatever restrictions were there in MODVAT Scheme were put to an end andcomparatively, a free hand was given to the assesses.

Under the CENVAT Scheme, a manufacturer of final product or provider of taxable service shall

be allowed to take credit of duty of excise as well as of service tax paid on any input received in

the factory or any input service received by manufacturer of final product. Inputs include goods

used in the manufacture of capital goods which are further used in the factory of the

manufacturer.

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The changes in CENVAT Credit Rules

A number of changes have been brought about in CENVAT Credit Rules, 2004 (Notification

3/2011-CE (NT) dated 01.03.2011). The changes in CENVAT Credit Rules are guided, inter-

alia, by the following considerations:

a. Describe the scope of eligible inputs and input services more clearly so as to minimize

disputes in their interpretations;

b. Eliminate distortions and areas of tax avoidance arising from differential treatment of

goods and services used for similar purposes;

c. Provide a practical scheme for the segregation of CENVAT credits used in respect of

final products and output services where they are partially exempted with condition that

no such credits shall be taken;

d. Liberalize the provisions in certain areas to meet the legitimate demands of business;

Details of important changes made in CENVAT Credit Rules, 2004 related to Service

Providersare given in the following paragraphs.

I. Expansion in the Scope of Exempted Services:-

W.e.f. 01.04.2011, exempted services also includes:-

a. taxable services 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. In simple

terms that part of taxable services whose abatement has been claimed will be treated as

exempted service. For example if a cab operator has rendered taxable services of Rs. 10

Crore and has claimed abatement under Notification 01/2006 then abated portion of the

turnover i.e. 6 Crore (10 Crore*60% ) will be treated as exempted service.

b. Trading Activity. Value of exempted service would be equal to difference between sale

price and purchase price (provided under Explanation inserted under Rule 6 of CENVAT

Credit Rules, 2004)

II. Input Services:-

Definition of input services has been substituted by new one. New definition will be applicable

from 01.04.2011.

In nutshell following four changes are made vide new definition:-

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A. CENVAT Credit of services related to Setting up of Business will not be allowed

w.e.f. 01.04.2011:-The word setting up has been deleted. Due to the deletion of this

word CENVAT Credit of input services used for setting up of business will not be

available to the service provider. In brief earlier we were claiming CENVAT Credit of

services procured prior to commencement of operations. Now after 01.04.2011 CENVAT

Credit of such services will not be available to service provider.

B. Scope of input services has been restricted by deleting the phrase activities relating

to business such as:-The phrase activities relating to business such as has been

deleted. Earlier due to this phrase we always says definition of input services is wide

enough to cover, in addition to services used for providing output services, all services

relating to business. Meaning thereby service of any nature if used for business purposes

is eligible for CENVAT Credit. Therefore w.e.f. 01.04.2011 CENVAT Credit of only

services covered under specified activities is eligible under inclusive part.

C. Services of business exhibition and legal service has been included in the inclusive

part.

D. CENVAT of specified services will be available in specified cases:-Certain services

have been specified in respect of CENVAT Credit will available if these are used for

providing specified services. These cases are:-

a. Denial of CENVAT Credit in relation to Construction Sector:-CENVAT Credit of

Architect Service, Port Service, Other Port Service, Airport Service, Commercial or

Industrial Construction Service, Construction of Complex Service, and Work Contract

Service (herein after referred as specified services) will not be allowed if these services

are used for

i.

construction of building or civil structure of a part thereof, orii. Laying of foundation or making structure for support of capital goods

However, CENVAT Credit will be allowed if these services are used for providing specified

services mentioned above. This can be easily understood with the help of diagram provided in

Annexure-A.

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b. Services related to Motor Vehicles:-

c. CENVAT Credit of General Insurance Service, Rent-a-Cab Service, Authorized

Service Station Service, Supply of tangible goods servicesrelated to motor vehicle will

be allowed only when motor vehicle is used by following service providers:-

i. Courier Service,

ii. Tour Operator Service,

iii. Rent-a-Cab Service,

iv. Cargo Handling Service,

v. Transport of Goods by Road,

vi. Outdoor Caterer Service,

vii. Pandal or Samiana Service

c. Services used for personal use or consumption of employees:-CENVAT Credit of

services used for personal use or consumption of employees will not be allowed. A list of

specific services has also been given by way of example in the definition. These specific

services are:-

i. Outdoor Catering,

ii. Beauty Treatment,

iii. Health Service,

iv. Cosmetic and plastic Service,

v. Membership of Club,

vi. Health and fitness Center,

vii. Life Insurance and Health Insurance,viii. Travel Benefits extended to employees on vacation

III. Amendment in Rule 6:-

a. In case assessee is not maintaining separate books of accounts then w.e.f. 01.04.2011,

he can opt any one of the following option:-

a. Pay an amount equal to 5% of exempted services.

b. Pay proportionate amount on the basis of turnover of last F.Y.c. Maintain separate books of accounts used for taxable activities and exempted

activities and adopt proportionate method for input services used for exempted

activities. In brief, for inputs use same method as provided in Rule 6(2) and for

input services adopt proportionate method.

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b. Valuation for Rule 6(3) & 6(3A) in case assessee is paying service tax at specified

rates:-

The value in respect of services of air travel agent or services in relation to purchase or

sale of foreign currency services or Rule 6(7C) of Service Tax Rules and paying tax at

specified rates and those who has opted work contract composition scheme, will be tax

amount divided by the rate of service tax applicable under section 66 read with any

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general exemption e.g. in case assessee has opted composition scheme in respect of

output services of Rs. 10 Crore then value should be 10 Crore* 4.12%/10.3%.

c. Valuation for Rule 6(3) & 6(3A) in case of trading activity:-

The value of trading service shall be the difference between the sale price and purchase

price of goods.

d. Rule 6(5) which provide 16 services in respect of which CENVAT Credit is fully

allowed even if these are also used for providing exempted services, has been deleted

w.e.f. 01.04.2011.

e. Rule 6 not apply in case of services provided to SEZ:-

Rule 6(6A) has been amended to include provision of services without payment of

service tax to a unit in SEZ or to a developer in SEZ for their authorized operations.Therefore w.e.f. 01.03.2011 provision of Rule 6 will not apply in case of services

provided to SEZ units or developer for authorized operations in SEZ.

f. Special Provisions for Banking Company or Financial Institutions and Life

Insurance or Management of ULIP Service:-

A substantial part of the income of a bank or a life insurance company is from

investments or by way of interest in which a number of inputs and input services are

used. There have been difficulties in ascertaining the amount of credit flowing into

earning these amounts. Thus a banking company or a financial institution, including

NBFC, providing banking and financial services are being obligated to pay an amount

equal to 50% of the credit availed. In case of services relating to life insurance or

management of ULIPs such amount will be equal to 20% of credit availed. Other options

of payment of amount under Rule 6 shall not be available for these taxpayers.

In nutshell, these specified assessees will firstly claim CENVAT Credit of all eligible

inputs and input services and thereafter will have pay 50% or 20%, as the case may be, of

CENVAT Credit availed. Also nothing has been mentioned for CENVAT Credit on

capital goods, therefore no need to reverse CENVAT Credit taken on capital goods.

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Condition for allowing CENVAT credit:-

(1) The CENVAT credit in respect of inputs may be taken immediately on receipt of the inputsin the factory of the manufacturer or in the premises of the provider of output service:

Provided that in respect of final products, namely, articles of jewellery falling under heading7113 of the First Schedule to the Excise Tariff Act, the CENVAT credit of duty paid on inputs

may be taken immediately on receipt of such inputs in the registered premises of the person who

get such final products manufactured on his behalf, on job work basis, subject to the conditionthat the inputs are used in the manufacture of such final product by the job worker.

(2) (a) The CENVAT credit in respect of capital goods received in a factory or in the premises ofthe provider of output service at any point of time in a given financial year shall be taken only

for an amount not exceeding fifty per cent. of the duty paid on such capital goods in the same

financial year:

Provided that the CENVAT credit in respect of capital goods shall be allowed for the whole

amount of the duty paid on such capital goods in the same financial year if such capital goods are

cleared as such in the same financial year.

Provided further that the CENVAT credit of the additional duty livable under sub-section (5) of

section 3 of the Customs Tariff Act, in respect of capital goods shall be allowed immediately onreceipt of the capital goods in the factory of a manufacturer.

(In above proviso the portion beginning with the words and figure "as amended by clause 72"

and ending with the words "the force of law,"

(b) The balance of CENVAT credit may be taken in any financial year subsequent to the

financial year in which the capital goods were received in the factory of the manufacturer, or inthe premises of the provider of output service, if the capital goods, other than components, spares

and accessories, refractories and refractory materials, moulds and dies and goods falling under

heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804 of the

First Schedule to the Excise Tariff Act, are in the possession of the manufacturer of finalproducts, or provider of output service in such subsequent years.

Illustration.- A manufacturer received machinery on the 16th day of April, 2002 in his factory.

CENVAT of two lakh rupees is paid on this machinery. The manufacturer can take credit up to a

maximum of one lakh rupees in the financial year 2002-2003, and the balance in subsequentyears..

(3) The CENVAT credit in respect of the capital goods shall be allowed to a manufacturer,

provider of output service even if the capital goods are acquired by him on lease, hire purchase

or loan agreement, from a financing company.

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(4) The CENVAT credit in respect of capital goods shall not be allowed in respect of that part of

the value of capital goods which represents the amount of duty on such capital goods, which themanufacturer or provider of output service claims as depreciation under section 32 of the

Income-tax Act, 1961( 43 of 1961).

(5) (a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or afterbeing partially processed are sent to a job worker for further processing, testing, repair, re-

conditioning, or for the manufacture of intermediate goods necessary for the manufacture

of final productsor any other purpose, and it is established from the records, challans or memosor any other document produced by the manufacturer or provider of output service taking the

CENVAT credit that the goods are received back in the factory within one hundred and eighty

days of their being sent to a job worker an if the inputs or the capital goods are not received

back within one hundred eighty days, the manufacturer or provider of output service shall pay anamount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting

the CENVAT credit or otherwise, but the manufacturer or provider of output service can take the

CENVAT credit again when the inputs or capital goods are received back in his factory or in thepremises of the provider of output service

(b) The CENVAT credit shall also be allowed in respect of jigs, fixtures, moulds and dies sent by

a manufacturer of final products to a job worker for the production of goods on his behalf andaccording to his specifications.

(6) The Deputy Commissioner of Central Excise or the Assistant Commissioner of CentralExcise, as the case may be, having jurisdiction over the factory of the manufacturer of the final

products who has sent the input or partially processed inputs outside his factory to a job-worker

may, by an order, which shall be valid for a financial year, in respect of removal of such input or

partially processed input, and subject to such conditions as he may impose in the interest ofrevenue including the manner in which duty, if leviable, is to be paid, allow final products to be

cleared from the premises of the job-worker.

(In sub-rule (6), words "Deputy Commissioner of Central Excise or the Assistant Commissioner

of Central Excise, as the case may be,"

(7) The CENVAT credit in respect of input service shall be allowed, on or after the day which

payment is made of the value of input service and the service tax paid or payable as is indicated

in invoice, bill or, as the case may be, challan referred to in rule 9.

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Refund of CENVAT credit :-

Where any input or input service is used in the manufacture of final product which is cleared forexport under bond or letter of undertaking, as the case may be, or used in the intermediate

product cleared for export, or used in providing output service which is exported, the CENVAT

credit in respect of the input or input service so used shall be allowed to be utilized by themanufacturer or provider of output service towards payment of,

(i) duty of excise on any final product cleared for home consumption or for export on payment ofduty; or

(ii) service tax on output service, and where for any reason such adjustment is not possible, the

manufacturer or the provider of output service shall be allowed refund of such amount subject tosuch safeguards, conditions and limitations, as may be specified, by the Central Government, by

notification:

Provided that no refund of credit shall be allowed if the manufacturer or provider of outputservice avails of drawback allowed under the Customs and Central Excise Duties Drawback

Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002, in respect of such

duty; or claims rebate of service tax under the Export of Service Rules, 2005 in respect of suchtax.

Provided further that no credit of the additional duty livable under sub-section (5) of section 3

of the Customs Tariff Act shall be utilized for payment of service tax on any output service.

Explanation: For the purposes of this rule, the words 'output service which is exported' means the

output service exported in accordance with the Export of Services Rules, 2005.

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Bibliography / References

1 www.caclubindia.com

2 www.citefin.com

3 www.cbec.gov.in

4 www.thehindubusinessline.com

http://www.citefin.com/http://www.cbec.gov.in/http://www.cbec.gov.in/http://www.thehindubusinessline.com/http://www.thehindubusinessline.com/http://www.cbec.gov.in/http://www.citefin.com/