Credit of service tax

This query is : Resolved

rajesh (Querist)
Follow

01 June 2011 Suppose I have credit of service tax as follows.
1. 2009-10 Rs. 125420/-
2. 2010-11 Rs. 255609/-
Now my question is as I dont have to pay service tax, this credit will remain unutilised in the future also. So I want to ask whether I can book expenses in the year 2010-11 of two years service tax credit? Whether it is allowable expenditure under income tax act ? Also whether it can be considered as prior period items in the tax audit report?

Thanks

nice wallpapers, daemon tools

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
Follow

01 June 2011 Under Section 37(1) of income tax Act to claim the expenses assessee should have incurred expenditure during the year or relating to the year. If no expenditure is incurred, deduction cannot be allowed.

Hence as per my knowledge It is not an allowable expenditure.