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Service Tax Credit of last year

10 May 2007

Dear friends,
If a copmany has not mentioned in last service tax return (for the period ended 31st march 2005) about service tax credit (i.e. company has not taken any credit) , then whether said company can take benefit of service tax credit in the period of service tax return for the period ended 30th sept 2005.

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13 Replies

Balaji (B.Com) (48 Points)
Replied 10 May 2007

Company can take credit, provided notice or scruitiny is not taken up against the company and late filing is condoned by the department.

It is advisable to intimate department to regularise the lapse

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Ankit Agarwal (16 Points)
Replied 10 May 2007

There is no time limit as per CCR, 2004 for availing the service tax`credit on input services. If an assessee does not avail the benefit of credit on receipt of services by mistake, then it shall not mean that the assessee shall be denied for the same. (CBEC Manual Instructions)

There is no prblem if in the return he has not shown the credit. In the current period he can do so and avail the benefit.

Sanjay Dwivedi (Advocate & Consultant) (143 Points)
Replied 10 May 2007

Dear Mr. Bhagwat,

What I understand is that the company did not take credit and did not utilise it. (If credit was taken and utilised, but not shown in the return pls inform the department and file a corrected return).

As per rule 4 (7) of the Cenvat Credit Rules, 2004 the CENVAT credit in respect of input service shall be allowed, on or after the day which payment is made against the incoming invoice/ bill. There is no stipulation that the credit must be taken immediately or within some specified period etc. Therefore, in my view, you can still take credit.

One may say that the credit should be taken within a reasonable period. Considering the fact that the department has one year limitation for raising demands, a period of ‘one year’ should be deemed as reasonable.

Therefore all you need to do is keep a record of the credits taken and state the summary in your next return.

Thanks,
Sanjay Dwivedi

Ankit Bhatia (163 Points)
Replied 10 May 2007

Yes u can very well take it,as there is no time lt for taking credit and just the condition of 'paid'is prescribed in rules.there is no condn as in Capital goods.

Deepak Gadgil (54 Points)
Replied 10 May 2007

Dear Friends

The actual legal position has clearlly been explained by Mr Dwivedi & I fully agree with him

Deepak Gadgil
FCA, DISA
Solapur

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Tony Mp (94 Points)
Replied 10 May 2007

I agree with the view of Mr. Dwivedi.

TONY.M.P., THRISSUR., KERALA STATE.
9447080631
trc_mptony @ sancharnet.in

Dilip Darji (392 Points)
Replied 10 May 2007

Please refer to Para 3.5 of Chapter 5 of (Page No.6.83 of Central Excise Manual 40 th Edition by Mr.r K Jain) of CBEC's Excise Manual of Supplementary Instructions 2005(Inserted on 17/05/05 by CBEC), which very clear;ly provides that CENVAT credit can be taken at a later date also.

Sakir (13 Points)
Replied 10 May 2007

Hi,

under Cenvat Credit Rules, no time limit is mentioned for availing the cenvat credit. hence, in your case the assessee can very well take the credit in subsequent financial year.

regards

Sakir
98223 49664

Ankit Bhatia (163 Points)
Replied 10 May 2007

Yes u can very well take it,as there is no time lt for taking credit and just the condition of 'paid'is prescribed in rules.there is no condn as in Capital goods.

Amit (61 Points)
Replied 10 May 2007

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Paresh Bhagwat (46 Points)
Replied 10 May 2007

Thanks to all for quick reply.

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Originally posted by :Ankit Agarwal
"	There is no time limit as per CCR, 2004 for availing the service tax`credit on input services. If an assessee does not avail the benefit of credit on receipt of services by mistake, then it shall not mean that the assessee shall be denied for the same. (CBEC Manual Instructions)There is no prblem if in the return he has not shown the credit. In the current period he can do so and avail the benefit.	"

I have gone through the answer given above

as a manufacturer of excisable goods am i eligible to avail cenvat credit of service on security services, cleaning services, courier services, maintainence & repairs today in the month of November/December-2008 from 10-09-2004 and case law of tribunal or Supreme court allowing such availment of service tax paid by us after period of four years

lakshmi (99 Points)
Replied 21 November 2008

Originally posted by :Paresh Bhagwat
"	Dear friends,If a copmany has not mentioned in last service tax return (for the period ended 31st march 2005) about service tax credit (i.e. company has not taken any credit) , then whether said company can take benefit of service tax credit in the period of service tax return for the period ended 30th sept 2005.	"

There is no time limit for availing the input credit. The input curedit should have been received after 10/09/2004