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Cenvat credit of duty

anita (trainee) (514 Points)

04 March 2015

Dear experts,

If dept raises a demand of service tax during audit and if assessee pays the same, will he be entitled to the cenvat credit of the same?

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5 Replies

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 04 March 2015

yes he wil b allowed for the same dear..!!

sesha (accounts executive) (1101 Points)
Replied 04 March 2015

period of cenvat credit raised from 6 months to 1 year ie time limit implemented on union budget 2015-16

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].