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12.02._ST

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This query is : Resolved

CA Suresh Choudhary (Querist)

12 February 2009 If an assessee is liable to pay service tax in one quarter & having sufficient CENVAT credit in the subsequent year for the FY 07-08.

My query is can he claim cenvat credit on overall basis or he has to pay the ST in first quarter & then claim for refund by availing benefit of cenvat credit at the time of filing half yearly return?

annapurna

annapurna (Expert)

15 April 2009 The provisio to Rule 3(4) requires that while paying service tax on output service, the CENVAT credit shall be utilised only to the extent such credit is available on the last day of the month/quarter as the case may be. CENVAT credit cannot be clained on overall basis, for example in the first quarter there is service tax payable and in the second quarter there is CENVAT credit, for the same first service tax has to be paid for the first quarter.

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