11 July 2008
Dear sir, i just want to know that can i carry forward Serive tax liabilities like that service tax cenvet credit. example i have first month 100/- liabilities of serive tax in that month i have 90/- cenvet credit in next month i have 90/-liabilities of serive tax in that month i have 100/- cenvet credit in that situation can i 10/- service tax liablilites of first month use of second month of excess cenvet credit ..........
14 July 2008
Rule 3(4) requires that while paying service tax on output service, the CENVAT credit shall be utilised only to the extent such credit is avaiable on the last day of the month/quarter for which service tax is required to be paid. In the first month your company is required to pay the service tax of Rs.10 and in second month your company can carry forward excess credit for the forthcoming months
CAclubindia
