Service tax credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2015 Hi Expert,
Question is pertaining to carry over of cenvat credit.

Service tax collected from company's clients by raising bills in August 1 lakh

service tax paid on bills raised against the company is 1.5 lakhs.

Question 1)
Can cenvat be claimed for 1 lakh in August.
OR there is some limit on cenvat credit that can be claimed?
This means service tax payable is NIL?

Question 2)
Can unutilised Cenvat credit be carried forward without any limit?
OR has to be used with in some time frame?

thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 September 2015 1 Cenvat credit can be claimed for 1 lakh in August. Time limit for claiming cenvat credit is one year. After adjusting cenvat credit service tax payable may be Nil.
2 Unutilised cenvat credit can be carried forward without any time limit.

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2015 Thanks.

You've written:
Time limit for claiming cenvat credit is 1 year and
Unutilised cenvat credit can be c/f for unlimited period.

I find these two statements conflicting.

please explain.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 September 2015 For availment of cenvat credit one year limit is there and for utilisation no time limit.
See the link for more details.
arxadvisers.com/userfiles/cenvat.pdf.

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2015 Understood :) thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 September 2015 If you contact the concerned officer in the bank he will guide you.

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