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Apr 07, 2009 at 10:14 AM

Service Industry & CIN settings


Dear All,

Our client is into Engineering Construction industry. It has got Service Tax registration number. As it is not into manufacturing, it does not have any excise registrn no.

Under Indian scenario, we can take CENVAT (Input Excise) Credit on the procurement of the excisable material. This credit can be utilised against the Output Service Tax. ( which the client recovers from its customers for paying to the Govt)

But we are not going to maintain CIN settings because

1) There is no excise registration

2) The mainteinance of Part I & part II registers is not required.

3) There is no requirement to maintain the Chapter ID's for the excisable material.

4) Due to the above the CIN setting can not be maintained.

So how to capture Excise duties in this case? How to take cenvat credit in respect of duty on excisable material?

How to capture the excise duty on capital goods - 50% in the year of purchase & balance in next year?

I know how this works when CIN is implemented. But how to work with this when CIN is not to be implemented?

Please advice,

Thanks & regards,