Service Tax credit
This query is : Resolved
pardeepgarg2000
(Querist)
10 December 2010
We are installing a new manufacturing plant. The land has been taken & civil work is going on. We have yet to take excise & service tax no.
Can we take service tax credit on different payments made to consultants etc & accumulate it & utilize for payment of excise duty after start of commercial production.
Can we take service tax credit on different payments made to consultants etc & accumulate it & utilize for payment of excise duty after start of commercial production.
11 December 2010
Are you taking these expenditure in profit & loss account or capitalizing with the assets. If you are transferring the duty and tax in input credit account, input credit may be availed with output services.
Madhukar N Hiregange
(Expert)
12 December 2010
The credit for the capital goods [ no depr on the credit] can be availed 50%. Inputs can be availed and inpout services. It maybe advisable to register and keep availing the credit and also filing the returns.
Suresh Ramaswamy
(Expert)
15 December 2010
Input credit can be availed on all inputs. In case of consumables, full input credit can be availed, and in case of Capital Goods input 50% credit can be availed in the year of purchase / installation and then balance 50% on the same goods in the subsequent year.
HOWEVER, IT IS ESSENTIAL THAT YOU GET REGISTERED WITH CENTRAL EXCISE / SERVICE TAX AUTHORITIES, since the Department may later deny credit for the pre-registration period, leading to un-neccessarty litigation.
HOWEVER, IT IS ESSENTIAL THAT YOU GET REGISTERED WITH CENTRAL EXCISE / SERVICE TAX AUTHORITIES, since the Department may later deny credit for the pre-registration period, leading to un-neccessarty litigation.
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
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- 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
