Cenvat credit of duty

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Dear experts,

If dept raises a demand of service tax during audit and if assessee pays the same, will he be entitled to the cenvat credit of the same?

Replies (5)

yes he wil b allowed for the same dear..!!

period of cenvat credit raised from 6 months to 1 year ie time limit  implemented on union budget 2015-16

As per Rule 4(1) of the CENVAT Credit Rules, 2004 is proposed to be to amended with effect from September 1, 2014 to provide that the manufacturer or the service provider should avail of CENVAT credit of the duty paid on inputs or the service tax paid on input services, within 6 months from the date of the relevant document specified in Rule 9(1) of the CCR, 2004, eg. Invoice.

 

The proviso to Rule 4(7), in terms of which, the service recipient who has taken CENVAT credit on the basis of the receipt of the documents referred to rule 9(1) of the CCR, 2004 is required to reverse the credit if the payment is not made within 3 months of the date of the input invoice, etc.

Amendments in the CENVAT Credit Rules, 2004 Time limit for taking CENVAT credit on inputs and input services enhanced from the present 6 months to one year [Rule 4].

If assessee make the payment before the elapse of 1 year from the date of invoice then cenvat credit available.

the duty in question here is the service tax liability on director's remuneration for a period 1.8.2012 till 31.3.2013

Company is claiming that directors are whole time directors but dept is insisting on service tax amount.

if cenvat credit is available then the duty can be paid otherwise the company wishes to go in litigation over this point.

 

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