HIMANSHU SHARMA (STUDENT) (117 Points)
27 June 2013Please Comment on this Point:
"The Cenvat Credit shall not be utilised for payment of tax dues under the schemes."
TAX due means,
I want to pay service tax period from 2008 to 2012 under this schem, whether Cenvet Credit cannot be utilised?
What is the reason for not giving Cenvat Credit....
Waiting for reply.....
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 27 June 2013
Assume,
A. Service tax payable for service provided 2008-2012 =Rs. 10 lacs
B. Cenvat credit of ST & excise available against above = Rs. 5 lacs
C. So Net ST payable = Rs. 5 lacs
D. Now, in 2013 , you have paid excise duty or/and service tax of say Rs. 20 lacs on some inputs and inputs services.purchased ..and their credit is available for paying ST and excise....
Here since the excise and St credit of Rs. 20 lacs relates to 2013...thatt's why you cannot say to govt that adjust my O/standing liab of St Rs. 5 lacs(as in point C)....meaning thereby you need to settle the NET O/S ST OF RS. 5 LACS under VCES,2013 IN CASH AND ONLY IN CASH
HIMANSHU SHARMA
(STUDENT)
(117 Points)
Replied 27 June 2013
thanks for reply...
Means Cenvat Credit cannot be utilised for the period 2013 for payment of ST.. but Cenvat Credit for the period 2008 to 2012 can be utilised under this scheme....
please chekc my calcuation is correct:
Service tax payabe for the year 2008 rs. 2267437.03
Input Credit for the year 2008 201216.9
------------------------
Net Tax Payable for the year 2008 206220.13
and
if you have made calcuation under this scheme, pelease post calcuation sheet....
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 28 June 2013
yes, your calculations are correct...sorry no working sheet right now...
HIMANSHU SHARMA
(STUDENT)
(117 Points)
Replied 28 June 2013
ok
but i have few confusion
1.in scheme instruction given that calcuation will be made in PART B of Form ST 3, in PART B only shows Service Tax calculation not payment through CASH or Cenvat....
2. form prescribed FORM VCES-1 also shows detais of tax dues
Service Tax.......
Education Cess....
SHEC....
Total tax due,....
they cannot show adjustment of CENVAT CREDIT
Mir Irshad Ali
(Partner)
(192 Points)
Replied 01 July 2013
As per the provisions of Rule 6(2) of Service Tax Voluntary Compliance Encouragement Rules, 2013. "The CENVAT credit shall not be utilised for payment of tax dues under the Scheme.". Thus it appears that no CENVAT credit can be utilised for making payment of Tax dues under the Service Tax Voluntary Compliance Encouragement Scheme.
HIMANSHU SHARMA
(STUDENT)
(117 Points)
Replied 01 July 2013
Mir Irshad Ali, is right,,,
cenvat credi cannot be utiised for paymnent of tax due under this schem...
but cenvet credit canbe utiised for payment of tax due not covered under this scheme...
CAclubindia
