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Cenvat credit admissibility
A company is formed for development , construction and formation of gas terminal .Currently company is pre operation stage so all the expenditure mainly incurred towards Legal & professional fee for carrying out various studies .
company has accumulated service tax amount, paid on professional fee .I just want to know can company claim Cenvat Credit of service tax amount paid on input service because company is pre- operation stage. Production will start in 5 year .
Accumulated Cenvat credit amount can be claimed or booked as a capitalized expenses?
Replies (2)
As per decision of Guj. HC in Cadila Healthcare expenses directly relating to manufacture before pre-operation stage can be taken.However, Cenvat credit is admissible only within 1 year from the date of invoice.
You can avail CENVAT CREDIT right now (within one year of issued of invoice) and utilise whenever you want . There is no time limit for utilisation of CENVAT Credit.
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