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

Clarification on Carrying Forward 2% and 1% CENVAT Account Balances: Keep in Credit Account and Show in Return A user inquired about handling a balance of 2% and 1% in the CENVAT account at the end of February, questioning whether it should be carried forward and shown in the return. A respondent advised that the balance should be kept in the credit account and shown in the return, noting that typically when dutiable goods are exempted from duty, the credit for duty paid on inputs in the credit account lapses. The user expressed gratitude for the clarification provided.