Admissibility of Cenvat Credit as business Expenses
This query is : Resolved
HARISH KAPOOR
(Querist)
12 August 2009
If a companey had huge amount of accumulated unutilised Cenvat Credit of Service Tax and in the year 2009-10 company decided not to show this amount under cenvat CreditRecoverable account as cuttent asset and want to charge whole amount to P & L account as Service Tax as expenditure. will this amount be allowable in the computation of Taxable Income (under Income Tax) as a deductible expenditure of this year or the amount pertaining to earliear years booked under Cenvat credit recovrable a/c will be disallowed as Inadmissible expenses being Prior Period.
chetan soni
(Expert)
12 August 2009
you will not be able to take the entire available cenvat balance as expenses.
Unless the entire balance written off by excise authority or you stopped manufacturing the excisable goods.
Unless the entire balance written off by excise authority or you stopped manufacturing the excisable goods.
HARISH KAPOOR
(Querist)
13 August 2009
In this query the assessee is a service provider and not a manufecturer.Since the assessee do not want the utilise the accumulated cenvat credit of earlier years and want to charge the same to Revenue as Service Tax (Exps).
Aditya Maheshwari
(Expert)
13 August 2009
Allowable
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
