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Utilisation of cenvat credit

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 Suppose X is a service provider and have output Service of Rs. 1,20,000 for A.Y 2013-14.His Service tax Liability is Rs.14,832.

His Input service is Rs.30,000 and Credit of Input Service tax on the same is Rs.3,708/-
However, X has not Utilised the credit of Rs. 3708 in AY 2013-14 and Paid Rs. 14,832(His Output Tax)

Can he Claim the credit of Input Service tax of Rs.3,708 in next year i.e AY 2014-15?

Whether it is mandatory to first utilise the Credit for payment of Output service tax?

Thanks in Advance...

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)

18 April 2013 1) Yes, you can claim in the year 2014-15.

2)No, mandatory provision in the act to say that first utilize the credit for payment of out put of tax.

Reference case laws:
Bharat Heavy Electricals V CCE Chennai [2000 (122) E.L.T 256]

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2013 Thanks a Lot:)

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