D K BAYYAREDDY (CHARTERED ACCOUNTANT) (52 Points)
23 December 2013Dear Sir,
The query is ;
01. Is Service receipient eligible to CENVAT credit of the tax paid under VCES scheme?.
02. Can CENVAT credit is eligibile for payments of taxe dues under VCES scheme?.
03. Can CENVAT credit be adjusted in making the declaration under VCES sCHEME?. Example : If have Rs. 3 laks liability and Rs. 1 lakh cenvat ia available in the books as same period of scheme, can I adjust and pay balance of Rs. 2 lakhs only?.
Please clarify?.
CA Gnanika
(CA )
(485 Points)
Replied 23 December 2013
Cenvat Credit cannot be used for making any adjustment for the dues payable under VCES.
In your example, you need to pay 3 lakhs, & cant set off cenvat credit of 1 lakh.
However the cenvat credit can be utilised to pay future service tax liability.
CAclubindia
