Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Cenvat credit on input service?

Dingu (Practice) (220 Points)

16 June 2012

If an assessee being a manufacturer taking CENVAT Credit on Inputs and Capital Goods, fails to take credit of Input Service on bills relating to earlier month can he claim CENVAt Credit of such Input Service?

If he can do so whether the assessee should file a reviced return or can he claim it in the suceeding return like TNVAT?

Is there any time limit prescribing the same and is there any caselaw or provision relating to this subjectt?

Reply
Follow
Share

17 Replies

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 16 June 2012

Need to filed revise ret, because unclaimed credit can't be c/f only unutilised cr can be c/f

1 Like

Prasad (Sr. Manager) (617 Points)
Replied 16 June 2012

Agree with Saurabh, and there is no time limit for claiming Credit.

1 Like

CA Akshay Yetiwar (ca) (254 Points)
Replied 16 June 2012

No need to revise the ER-1 return.

You just need to avail the cenvat credit on input service in current month and show it as availed in the current month so that if you want you can utilise it for the payment in the current month .

Apart from all above this.... there is not any provision for revising the ER-1 return.So no question of revised return arises.

Lalit Madan (Assistant Manager) (32 Points)
Replied 16 June 2012

You have no need to revise the return. Just take the Cenvat credit in nxt month.

1 Like

pankaj (sr. Executive) (25 Points)
Replied 16 June 2012

lalit Madan is right ....

1 Like

Jatin Singh Negi (Country Analyst ) (505 Points)
Replied 17 June 2012

Sir you were entitled to credit in the month in which youy received the bill(provided the paymeny of which is made within 3 months).

But inadvertantly the credit couldn't be booked in the same month.

The following points are relevant for you.

1.Now there is no need of revising the return.

2. Since the payment of service is not disputed so you can take the credit at any point of time.

3. The credit can be utilised against the payment of cenvat output liability.

1 Like

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 17 June 2012

Right ,ER1 cannot be revised9No provision) you can take cenvat in curent .

1 Like

CMA Siyad Abdul salam (Cheif Accounts and Costing Officer) (23 Points)
Replied 17 June 2012

There is no need to revise the return. The cenvat credit can be utilise at any point of time . So in this case as usual you can claim the credit in current month.

Dingu (Practice) (220 Points)
Replied 18 June 2012

Originally posted by : CMA Siyad Abdul salam
	There is no need to revise the return. The cenvat credit can be utilised* any point of time before the concerned goods/services terminated**. So in this case as usual you can claim the credit in current month.

Sir

*Should the credit be availed or utilised ?

**Does that mean before completion of the service the Credit should be utilised? Could you help me in making out the rule which speaks of it for reference?

CA Monal Agarwal (job) (38 Points)
Replied 18 June 2012

you need not revise the return .you can take cenvat credit in the following month.

Chetan (Officer) (112 Points)
Replied 18 June 2012

Originally posted by : Dingu
	Originally posted by : CMA Siyad Abdul salam There is no need to revise the return. The cenvat credit can be utilised* any point of time before the concerned goods/services terminated*. So in this case as usual you can claim the credit in current month. Sir Should the credit be availed or utilised ? **Does that mean before completion of the service the Credit should be utilised? Could you help me in making out the rule which speaks of it for reference?

You can avail the credit in the next month...you can utilise the same when ou have a liablity against the same.

Dingu (Practice) (220 Points)
Replied 18 June 2012

On few more issues i would like to have clearity in line with the above query

1.Which defintion is to be considered for Input Service, Definition on

a.the date of Completion of Service, or

b.the Date of Invoice, or

c.the Date of Payment or

d.the Date on which CENVAT is availed

1A. Does Point of Taxation Rules 2011 have any impact on the same

2.Suppose a Factory comprising of two units, within same premises

Unit 1 = Manufacture of Ingots (Operational and Running)

Unit 2 = Manufacture of TMT Bars-Rolling Mill (Under Construction)

Service TaX is charged for providing Commissiong and Installation Service for the Rolling Mill.

Is it possible to avail and utilise CENVAT of such Service Tax as Input Service before completion and Commencing of operation of the Rolling Mill under the old definition of Input Service ? (Since under the new definition service tax paid in setting up a new unit is not an Input service).