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Service tax credit not claimed for many years

anita (trainee) (514 Points)

17 February 2015

if an assessee has not taken the cenvat credit of service tax paid paid since last 8 years can he do it now?

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2 Replies

Aditya RVS (Practice) (221 Points)
Replied 17 February 2015

Earlier, it was possible, but after issue of Notification No.21/2014-C.E. (N.T.), dated 11-7-2014 (with ffect from 11.07.2014) the manufacturer or the provider of output service cannot take CENVAT credit after six months of the date of invoice.

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 05 March 2015

As per Rule 4(1) of the CENVAT Credit Rules, 2004 is proposed to be to amended with effect from September 1, 2014 to provide that the manufacturer or the service provider should avail of CENVAT credit of the duty paid on inputs or the service tax paid on input services, within 6 months from the date of the relevant document specified in Rule 9(1) of the CCR, 2004, eg. Invoice.

The proviso to Rule 4(7), in terms of which, the service recipient who has taken CENVAT credit on the basis of the receipt of the documents referred to rule 9(1) of the CCR, 2004 is required to reverse the credit if the payment is not made within 3 months of the date of the input invoice, etc.

Amendments in the CENVAT Credit Rules, 2004 Time limit for taking CENVAT credit on inputs and input services enhanced from the present 6 months to one year [Rule 4].