Sponsored
    Follow Us:
Sponsored

CA Srikant Agarwal

We know that education cess and Higher education cess has been withdrawn on excise duty (though the same continues with service tax, income tax and other applicable taxes) w.e.f 01.03.2015.

As a result w.e.f 01.03.2015 the manufacturer is paying only basic excise duty (excluding education cess and higher education cess).

However in many cases manufacturer has received the goods dispatched by their vendors prior to 01.03.2015 and as a result the manufacturer was required to make payment of education cess and SHEC to such vendors. It leaded to a dilemma whether such Education cess and SHEC can be adjusted as CENVAT against output excise duty liability   (since output excise duty liability does not contain any element of Education cess and SHEC). The same clarity was also not there w.r.t education cess and SHEC paid by the manufacturer on services availed.

In order to clarify the above situation, CBEC has issued notification No. 12/2015-Central Excise (N.T.) dated 30.04.2015, whereby it has clarified that a manufacturer can take CENVAT credit of Education cess and SHEC paid on input as well input services against their output excise duty liability.

Relevant Notification No. 12/2015-Central Excise (N.T.) dated 30.04.2015 can be viewed at the following link :-

https://taxguru.in/excise-duty/utilisation-credit-education-cess-paid-inputs-capital-goods.html

Click here to read Other Articles of CA Srikant Agarwal

Sponsored

Author Bio

I am a working professional having more than 13 years of experience in field of Income Tax, TDS, VAT, Sales tax, GST and accounting. Can be contacted at [email protected] View Full Profile

My Published Posts

Dearness Allowance (DA) calculation for PSU employees for Q3 2024-25 (Oct 2024 to Dec 2024) Resignation by Director (Compliance to be done by Both Director & Company) Absence of a Director from a Board meeting and its consequences DIR-3 KYC Compliance for Directors- When and how to file Tax Implications of Financing a Wholly Owned Subsidiary through Loan / Equity View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

0 Comments

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Sponsored
Search Post by Date
November 2024
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930