chintz (CA Final ) (129 Points)
12 December 2009
Is the credit of service tax adjustible against cenvat payable if the credit of an expense say for eg Advertisement which is incurred in april and paid in may but credit of service tax paid is still not availed till december?
What is the time limit of taking the credit of tax paid on inputs ?
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 12 December 2009
Yes, u can take credit... No time limit for taking credit
Navneet Gupta
(Article)
(129 Points)
Replied 16 December 2009
i agree with Ashish.
credit can be availed after payment of service tax but there is no time limit upto which credit should be availed after paying the ST. You can also refer the case of Dai Ichi Karkaria - SC on similar facts.
Reetika Goel
(Qualified Chartered Accountant)
(565 Points)
Replied 20 December 2009
Law does not provide for any time limit for taking credit.
Once you have paid for the said service, you can take its credit at any time be it immediately after payment or at some later time.
Time limit for availing credit is not specified to provide some flexibility in the taxation structure & thus, you can book credit for any input service anytime after its payment even though same was paid 2-3 years back.
As said by Mr. Navneet Gupta, you can also refer to the decision of Supreme Court in Dai Ichi Karkaria.
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