The Ministry of Finance has notified CENVAT Credit (Tenth Amendment) Rules, 2016.
In rule 9 of the CENVAT Credit rules, 2004, dealing with documents and accounts, Government has substituted a clause ‘fa’ which is “(fa) a Service Tax Certificate for Transportation of goods by rail issued by the Indian Railways; or”..
In the said notification, the Central Board of Excise and Customs has amended to the effect that photocopies of the railway receipts shall be enclosed with the STTG certificate in case of availing CENVAT credit of service tax paid on transportation of goods by rail. Following the notification, the Board further issued a circular toits officials prescribing the procedure to be followed in respect of availing CENVAT credit of service tax paid on transportation of goods by rail.
In the recent circular issued by the CBEC directed that the STTG certificate, which includes the particulars of the customer, shall be to the consignor/consignee for the purpose of availing CENVAT credit. The format of the said certificate is available with the present circular.
It is further directed that in cases where the Service Tax paid by the consignor and he intends to avail the CENVAT credit, he may avail the same on the strength of the STTG certificate issued in his namein the format prescribed in the circular.
As per the circular, the CENVAT credit can also be availed by an eligible consignee by making a written request to raileays for issue of consignee-wise STTG certificate in the prescribed form. The consignee-wise certicate cannot be issued if a certificate is already issued in terms of clause (iii) of the circular.
The amended rules shall came into force on 20th September 2016.
Read the full text of the notification below.
