Reversal of input service tax

Queries 357 views 8 replies

Dear sir,

m working in a company where 90% of the services are exported and 10% is locally provided, we are having so many input services, but as per rule we cant take input if we have exempted services and need to reverse it as per Sec 6 of CCR, 

But if i avail the same but not utilise and carry forward it to future local sales and utilise it on proposanate basis, is it viable ? as for utilisation there is no limit, and if i could not utilise the same in future dates wht i need to do with accumulated credit??

please guide me

thank u in advance

Replies (8)

Dear Jinal mehta,

1. Export of services shall not be considered as exempted services and the reversal mechanism provided in Rule 6 is accordingly not be applicable to the extent of export of services (Rule 6 (7) and (8) of Cenvat Credit Rules- CCR).

2. Further, you can apply for refund of accumulated credits under Rule 5 of CCR.

So is that mean i can avail input entirely and utisite it fully to make domestic sales service tax payments??

Yes . However if you are providing any other exempted services domestically, then the reversal shall apply.

No there are no other services, but i doubt about reversal, i have confirmed with 2 professional thy are of opinion that reversal need to be done

Dear Mr. Jinal Mehta,

No reversal needs to be done as said by Mr. Nagendra Hegde.

You can go for refund of CENVAT credit as per Rule 5 of CENVAT credit Rules, 2004.

Dear Mr Arvind,

 

Agreed for your point that refund is there, but practiclly speaking whenever we goes for refund thy issues some point and other than giving refunds they issue demand, so in practicle scenario refund rule does noe exists

Dear Sir

I am Sathya, i am working for private co., as we are in sales & service providers. Can we take input credit on all the invoice pertaining to FY from Apr to Mar. or we need to take input credit susequent months. Suppose if we have ot taken for 6 to months

Regards

Sathya

Thanks in Advance Sathya


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