BAL OF 2% & 1% IN THE CENVAT A/c

[MEHUL ASHAR]

Respected Sir,

As regarding above subject my query is that one of my clients has the balance of 2% and 1% in the cenvat A/c in the february end then what I have to do Sir,Do I have to carry forward the balance and show in the return or not.Please reply.

THANKING U

[Rajagopalan Ranganathan]

Sir,

You have to keep the balance in your credit account and show it in your return. The Department is expected to issue some instructions in this regard. But normally when a dutiable goods got exempted from payment of duty then credit of duty paid on inputs available in credit account has to lapse.

[MEHUL ASHAR]

THANK U SIR U SOLVED MY CONFUSION.I M GRATEFUL 2 U.

AI Summary

Cenvat credit carryforward: retain remaining input credit and declare it in returns, subject to departmental guidance.
Retain the remaining CENVAT credit balance in the credit account and disclose it in the return. Administrative instructions may follow, but ordinarily if the finished goods become exempt from duty, the input credit attributable to those inputs lapses and cannot be retained.