Cenvat Credit for Taxable and Non Taxable Services

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This query is : Resolved

vidya (Querist)

21 May 2009 A client is providing both taxable and export services. As per notification No. 10/2008 cenvat is being claimed on proportionate basis.

My query is that the client have substantial amount of input credit brought forward from previous year, can that be claimed in this year with regard to the notification as there is no clarification regarding the same? If not claiming the amount, what is the other alternative?

Pls provide the material through which I can substantiate the same to the client.

I need to know urgently.

Pls let me know ASAP.

Thanks.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

22 May 2009 The change in the earlier rule of limiting the utilisation to limiting the credit led to some unanswered questions.
One of them was whether the balance could be carried forward.
Since the law is silent and till date 15 months over., there is no clarification it can safely be assumed that the same can be carried forward and used in the subsequent year. Cenavt credit is a facilitating/ benficient provision.

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