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Cenvat credit

Queries 760 views 6 replies

 

Dear Frnds..,
 
Can a company use input credit not claimed by mistake since last  last two years upto March 2011 now by showing the same in April-11 to Sep -11 return.
The company has charged same to its P&L in earlier year now it want to use it as credit.& reverse the expenses.
 
Thanks...
Parminder
Replies (6)

not possible as it will generate the case of "unjust enrichment"

it could be claimed only if provisions were made in respective year's final accounts, 

Agree with Mr. Sharma. Though no time limit has been specified in the Rules for availment of CENVAT Credit, but in your case there may be an unjust enrichment.

Agree with Mr. Sharma. Though no time limit has been specified in the Rules for availment of CENVAT Credit, but in your case there may be an unjust enrichment.

The Issue is company has not claimed input credit by mistake..but now it doesnt want to lose the benefit.

 

Originally posted by : Parminder Kaur Bhatia

The Issue is company has not claimed input credit by mistake..but now it doesnt want to lose the benefit.

 

in the respective years the service tax paid is claimed as expenses under the P/L account, hence revision of such P/L is not possible at this stage.

 

ask your auditor about the situation and get his opinion, 

 

also you have not mentioned that for what reason you failed to claim input credit? if there is no taxable output service, then also input credit is not admissible 

Thanks for replying..

The company is maintaing seprate records for STPI and Non Stpi and has not claimed input servoces for all the transactions booked under STPI by mistake.

 

Regards

 


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