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Service Tax query

15 May 2017

It is possible to take credit of KKC paid at the time of input purchased if it is not adjusted with the output liability of KKC..?

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6 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 15 May 2017

yiu can take the credit but can be adjusted only with KKC output only if you are sure that therewill be no KKC expense it in your books if you are sure therewill be KKC output you can take KKC Input and if not utilised it can be carried forward

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sowmya (audit assistant) (228 Points)
Replied 15 May 2017

I agree with Mr sivaram

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Lokesh Wadhwa (32 Points)
Replied 18 May 2017

bt my question is ...if it's not adjusted even after carry forward ..there is still huge amount of KKC in books ...bt still there is no output tax liability of KKC. . because this company is not providing any service ...so it is possible to take refund of KKC .?

sowmya (audit assistant) (228 Points)
Replied 18 May 2017

I presume refund of KKC is only possible in respect of services provided to SEZ, exports. in all other cases it can only be adjusted against the KKC payable. as far as your case is considered instead of reflecting the same as input credit better to include KKC paid to the cost of Asset/ purchases/ services received

sanjay balande (Assistant Manager (Accounts & Indirect Taxes)) (103 Points)
Replied 18 May 2017

KKC IS LEVIED ON TAXABLE VALUE OF SERVICE PROVIDED W.E.F 01.06.2016. CENVAT CREDIT OF KKC IS ALLOWED TO SERVICE PROVIDER ONLY.

SEZ UNIT OR DEVELOPER OF SEZ CAN CLAIM REFUND OF SEZ PAID BY THEM ON SERVICES UTILIZED BY THEM.

IN YOUR CASE IF YOU ARE PROVIDER OF SERVICES, THEN ONLY YOU ARE ALLOWED TO TAKE CREDIT OF KKC. OTHERWISE DO NOT TAKE KKC CREDIT. IT SHOULD BE EXPENSE OUT.