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Service Tax Credit

Toms Abraham (Internal Audits) (215 Points)

17 February 2011

Dear Friends,

my company is having a service tax credit of more than one lakh rupees which we want to carry forward.

please advice me whether we can carry forward the same for the life-long period or for a time limit. if there is a time limit, then can anyone help me out to find out the time limit to consume the credit.

Warm Regards

Toms Abraham

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4 Replies

Sushma Mevacha (Executive) (394 Points)
Replied 17 February 2011

Dear Toms Abraham,

Please provide the details of the Company first, whether it’s a Manufacturer or a Service Provider along with the Status that What kind of Credit you have Taken for amounting Rs. 1 lac i.e. it is for Input Services, Input or Capital Goods.

This is will enable us to reply or suggest the solution.

Regards

Sushma Mevacha

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 17 February 2011

There is no time limit for carry faorward of cenvat credit.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 17 February 2011

if u opt for exemption of 10L in next year, then the accumulated credit will be zero. but if u opt to pay service tax from start, then the credit would be alive.

Athmaram (Articled Assistant) (170 Points)
Replied 20 February 2011

I Accept with Mr.US Sharma

Plz make sure that if the remaining cenvat credit of Rs.1,00,000 pertains to Capital Goods then out of the total credits 50% is claimed in the year of capital expenditure & the remaining is carried forward for utilisation in the next year.