LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Service tax Input Credit

Saravanan (Manager Internal Audit) (97 Points)

06 October 2007

What is the maximum period for carrying service tax credit.

Can the company carry this in its books based on future merger with another company where it can set off the service tax credit.

Reply
Follow
Share

9 Replies

Dinessh Kumar (Articled Asst.,) (193 Points)
Replied 07 October 2007

There is no maximum period for carrying the service tax credit. you can carry on upto any no. of years. but, i dont know whether we can carry on the credit after the merger also.

Ramasubbu K (Sr.GM - Finance & Company Secreta) (685 Points)
Replied 10 October 2007

Yes on merger also the service tax crdit can be carried forward and can be utilised in the merged company. BUt specific clause should be mentioned in the scheme of merger

Manish Agarwala (Student) (36 Points)
Replied 15 October 2007

No where is specified about the maximum No. of years upto which Service-Tax Credit (Output/Input) can be utilised.Whenever the company have substantial information as well as proper documentation available for availing the Service Tax Credit,he can do it so.

(Guest)

Pl. advice to us service tax rate for Mandap Keeper service provide by Hotel

(Guest)

Pl. advice to us service tax rate for Mandap Keeper service provide by Hotel

Geetanjali (Practice) (99 Points)
Replied 25 October 2007

Hi Rohit, The rate for this service is 12.36%on gross amount.Earlier There was abatement upto 60% of gross amt. but such exemption has been withdrawn w.e.f.9-7-04 vide notification no.8/2004-ST

Ajay Gumbar (Chartered Accountant) (263 Points)
Replied 25 October 2007

There is still an abatement of 40% vide Notification No. 1/2006 where a hotel provides Mandap Keeper Service and such service includes catering service, ie. supply of food along with any service in relation to use of madap. Regards, Ajay Gumbar

Vijay K. Agrawal (Service) (608 Points)
Replied 26 October 2007

you can accumulate cenvat credit. and utilise later on there is no time limit. if you read cenvat credit rules 2004 in that rule no.10 it was specifically written for transfer of cenvat credit in case of change of ownership, merger etc.