Amrut (Student) (95 Points)
08 September 2010A Ltd company has service tax credit of50000.00 avilable, but before filing the service tax return the company was takenover by B Ltd. Can B Ltd. claim the service tax credit in their return or should A Ltd. file it's return and claim50000.00 as refund?
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 08 September 2010
According to me, in your case, Cenvat credit neither be transfer nor refund. If I am wrong, please correct me.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 09 September 2010
Please see Rule 10 (2) of the cenvat credit rules which allow for a transfer. Refund is available only to exporters.
Amrut
(Student)
(95 Points)
Replied 10 September 2010
Section 11B of Central Excise Act, 1944 is made applicable to service tax refund matters. No such condition regarding "Exporters" is stated. and as per rule 10 (2) it can also be transferred to the transferee company. So, are both the options open to A Ltd?
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