input credit

This query is : Resolved

pkkapoor (Querist)
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22 March 2009 In case of an education institution, core activity (academic)falls under exempted category but the Institution also implements some projects which falls

under taxable services.
Since the common input cannot be segregated, we have decided for availaing input credit (service tax paid on security , house keeping, telephone, repair & maintenance , Insurance etc. )against payment of service tax in respect of projects.

These input credit would be taken from 25th March 2009 FOR THE FIRST TIME.

Service tax was paid in July 2008 and August 2008. Thereafter during September 2008 to February 2009, no service tax was collected and no service tax was paid.

Now service tax (input)from April 2008 to February 2009 which amounts to Rs.10,00,000

(100% in case of security and repair & maintenance and for otherSas per the ratio calculated as required under the service tax rule)

IS REQUIRED TO BE AVAILED AGAINST THE SERVICE TAX TO BE PAID IN MARCH 2009 AND BALANCE IS TO CARRIED FORWARD TO 2009-10.

Some body has advised us that there is a possibility of disallowance of input credit for the period April 2008 to June 2008 as we have paid service tax(output) in July 2008 and August 2008 without adjusting the input credit.

my queries are;

1. CAN WE AVAIL THE INPUT CREDIT PERTAINING TO JULY AND AUGUST 2008 AGAINST PAYMENT OF SERVICE TAX (OUTPUT)IN MARCH 2009.

2. CAN WE CARRY FORWARD UNUTILISED BALANCE OF INPUT CREDIT TO NEXT YEAR 2009-10.

BeyondConsultants

BeyondConsultants (Expert)
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22 March 2009 Yes you are eligible - Without any restriction. Just disclose CENVAT credit in your return but dont mention period for the same.

Regards
Nikhil
9891950868
nikhil.gupta513@gmail.com