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Input credit on capital goods

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Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2013 As per provision 1st year 50% credit can be taken on Capital goods.In books we transfer only 50% from Cenvat Credit to service tax liability but In Service Tax Return we show 100% duty in credit taken but we utilize only 50%.In 2013-2014 we have taken balance 50%.
As the 90 days gone we cant revise our return.
As per provision if anybody takes/adjust credit wrongly interest will be imposed.
My question- when we have not utilize credit more than 50% we have not made any short payment .Then why the question of Interest ?

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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17 September 2013 in retuen you have taken 100% credit.
that means your service tax liability has been reduced as per return because you should have taken only 50% credit. for excess credit taken, you are liable to pay interest

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