18 April 2013
Suppose X is a service provider and have output Service of Rs. 1,20,000 for A.Y 2013-14.His Service tax Liability is Rs.14,832.
His Input service is Rs.30,000 and Credit of Input Service tax on the same is Rs.3,708/- However, X has not Utilised the credit of Rs. 3708 in AY 2013-14 and Paid Rs. 14,832(His Output Tax)
Can he Claim the credit of Input Service tax of Rs.3,708 in next year i.e AY 2014-15?
Whether it is mandatory to first utilise the Credit for payment of Output service tax?