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SERVICE TAX CENVAT

Nagesh M R (Service) (113 Points)

22 January 2009

For new company registered under service tax, cenvat credit to be availed from

1. the date of registration

2. earlier paid amount also can be availed under cenvat

Regards,

Nagesh M R

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5 Replies

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 22 January 2009

In my opinion, a assessee can take the credit of cenvat on inputs procured before the date of registeration provided the said inputs are lying in stock as on the date of registration.

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OFFICESELVA (Service) (515 Points)
Replied 22 January 2009

What is the service? In most of the service inputs may not be used. You are eligible to avail credit only only after obtaing registration under service tax.

If you are paying for past period along with interest, you may take credit at your risk. While department will not accept the same, you may get favourable order on APPEAL.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 22 January 2009

It will depend upon the nature of service. It has to be seen whether the credit availed on inpt service is used directly or indirectly in the manufacture of goods or output services or not. For example, service taxes paid on consulting engineer charges for designing of plant is available even if such service tax is paid before registration.

Nagesh M R (Service) (113 Points)
Replied 23 January 2009

Thanks to all,

Mr. Rajesh, is specifying about name of the service, Sir, I feels if you list out the names of service in which we can obtain Cenvat credit for earlier paid amount i.e., before service tax regn., it will help to so many people those are in the loop

Nagesh M R

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 23 January 2009

Well Nagesh, there are very few services on which credit can be denied in a blanket manner. Thus it is necessary to examine the service tax paid on various services and looking at those from the angle of the definition of input service.