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TIME BAR ON CENVAT CREDIT ON INPUTS

deepak (CWA STUDENT AND SERVICE) (200 Points)

11 December 2007

Hi, pls tell me what is the time bar on cenvat credit on inputs.

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12 Replies

(Guest)

dear deepak Availing cenvat credit should be paid on orbefore 5th of the subsequent month.for delay payment 2% interest p.m or Rs1000/- per day whichever is higher is lived with T.R 6 -challan. No annual return to be filing. if

Ruchika Gupta (Chartered Accountant) (247 Points)
Replied 12 December 2007

But the query is that what is the time limit for taking cenvat credit on inputs. As per rule 4(1) of CCR 2004, cenvat credit on input may be taken when inputs are received in the factory or premises of service provider. As per clarification issued by CBEC, if the assessee did not take the credit on inputs, then he can't be denied on this ground to claim this credit later. Therefore, there is no time limit of taking cenvat credit on inputs!

Pritam (CA) (95 Points)
Replied 14 December 2007

There is no time bar in Cenvat Credit Rules. Also in one of the judgments (SAIL India) it was held that as there is no time limit cenvat can be availed any time. But for practical reason, in indutry, credit is availed in maximum 1 yr.

Ramesh Kothari (Manager-EOU commercial) (161 Points)
Replied 21 December 2007

CEnvat credit is to be taken as the entry of goods in premises however there is no time limit has fixed hence it is matter of litigatiion with the depat. Regards RAmesh Kothari

shyam kishor porwal (Chartered Accountant) (183 Points)
Replied 26 December 2007

Cenavt credit can be taken on inputs at any time after the goods have been received in factory. There is no any time limit. While in practice ,manufacturer uses a time period of one year.

(Guest)

Originally posted by :deepak
"	Hi, pls tell me what is the time bar on cenvat credit on inputs.	"

sanjeev (govt. Emloyee) (565 Points)
Replied 15 November 2008

Cenavt credit can be taken on inputs at any time after the goods have been received in factory. There is no any time limit in the excise manual. While in practice ,manufacturer uses a time period of one year for proper accounting.

(Guest)

WHAT IS THE TIME LIMIT TO TAKE CENVAT CREDIT OF SERVICE TAX WHICH IS PAID IN DEC.2008 BUT ACTUAL LIABILITY OF PAYMENT OF SERVICE TAX IS IN THE YEAR 2006-2007.

k.prabhakaran (finance) (33 Points)
Replied 19 December 2008

when payment made for serice tax bill then taken cenvat credit

S.P.Mahanta (Internal Auditor) (647 Points)
Replied 24 December 2008

Input Credit on Service tax paid is available to the manufacturer / Service tax provider only on payment of service Tax liability. It is immaterial when the liability has been provided for.