input tax credit availment

This query is : Resolved

Pragya Dash (Querist)
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11 February 2009 Expenses (Lease Rent) along with Service Tax accrued in Oct~Dec’08 but paid in Jan~Mar’09. Whereas company did not have taxable income in Oct~Dec08 but It has 50% of revenue from Taxable Services, can the company claim set off of 50% of aforesaid service tax amount in Jan~Mar’09 (since set off of service tax is claimable in the period during which payment is made)

Also can the company carry forward Service Tax incurred on Lease Rent capitalised (during construction period) for set off against future taxable income (though it may provide exempt service in the interim period partly or fully)

Dayal

Dayal (Expert)
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26 April 2009 yes.

You can also refer cenvat credit rules which are amply clear.

The credit is eligible only when you are providing taxable out put srevice or paying excise on dutiable goods.

Else the credit will only get accumulated and will not have any utility and will stand to be disallowed