ccr if not claimed before

[Pradeep Kumar]

Dear Sir

in the bill of cartage inward (via air) service tax charged by the transporter from company, however company erroneously booked the entire value in cost and no ccr claimed for the same and that invoice belongs to nov,13 month. now my question is wheather company can clain the ccr by correcting the entry bcoz company has filed return of income till december.

please give ur suggestion

regards

pradeep kumar

[Surender Gupta]

There is no restriction on correction of entry. You can avail cenvat credit now is otherwise you are eligible and fulfilling the conditions of input service under rule 2(l) of CCR, 2004.

[Pradeep Kumar]

thanks

[Rajesh Nathoo]

Dear Mr. Pradeep,

  Please refer to Board,s circular , 783/16/2004- CX dated 28.4.2004. Basic logic  of this circular is assessees don't get double benefit in Central Excise as well as Income Tax . Input duties are accounted in Cenvat credit Receivables A/c which is an asset account instead of expenditure account . You have already claimed it as expenditure under I.T Act . If u want to reverse the entry , u should keep I.T provisions in mind or if u want to revesse the entry , this claimed expenditure should reflect in your Income Account for which u are u liable to pay I.T. As per the Circular stated above , I.T. Authorities should be intimated by Central excise Officials so that assessee does not take double benefit in Central excise as well as Income tax .

[Pradeep Kumar]

Dear Rajesh Nathoo

Thanks for your suggestion. Let me clarify one more thing...in my query i told that assesse has filed return that return means here excise return not income tax return.

I have also studied the curcular which you have mentioned, which was talking about income tax point of view.

So the answer suggested by surender gupta ji is correct. Isnt it?

Regards

Pradeep Kumar

[Rajesh Nathoo]

Dear Pradeep,

  If u have not filed IT , then it is okay , u can reverse the entry and take credit  as there is no time bar for taking credit in central excise . 

[Rajesh Nathoo]

Dear Pradeep ,

 Plz. correct ur query ...............company has filed return of income till december .,  it gives a very different picture for which my earlier suggestion was meant  because when u r raising a query u should be clear of what u r asking .

[Pradeep Kumar]

Dear rajesh ji

I am sorry for the err. It was written by mistake. And thanks for your suggestion.

Regards

Pradeep Kumar

AI Summary

Cenvat credit eligibility: correcting entries permits claiming credit if conditions are met, but may require reversing income tax deductions. If the assessee satisfies the conditions of an input service under Rule 2(l) of the CCR, 2004, the accounting entry may be corrected and Cenvat credit availed because there is no time bar under central excise for taking credit. However, where the amount was already claimed as an expenditure for income tax purposes, the taxpayer must reverse or adjust income tax records to avoid double benefit, and tax authorities may be notified to prevent duplication of advantage.