UTILIZATION OF CENVAT CREIT OF ST AND ED BEYOND 6 MONTHS AND 1 YEAR

[Guest]

DEAR SIR ,

PLZ GUIDE ME WHETHER WE CAN AVAIL CENVAT CREDIT OF EXCISE DUTY AND SERVICE TAX BETWEEN PERIOD DATED 1-SEP-14 TILL 31-MARCH -15 OF INVOICES WHOSE DATE IS MORE THAN 6 MONTHS OLD .AND FROM 1-4-15 WHOSE INVOICE DATE IS MORE THAN A YEAR OLD .

PRATHIT MAINI

[Arun Kumar Singh]

Now the time limit of taking cenvat credit is one year from the issuing of invoice with effect from 1.3.2015.

[Guest]

BUT WHAT ABOUT INVOICES DATED BETWEEN 1 SEP 14 TILL 31 MARCH 15

[PARTHASARATHY V]

Hi Prathit Maini

There is a condition for taking Cenvat Credit (within one year form the date of Invoice for availing credit) but there is no limitation to utilize the same.

Also you have to keep in mind, the CESS and SHECES accumulated till 31st Mar 15 is not permissible to use. But the same received after 1.4.15 it can be availed.

[Yash Goyal]

Dear Prathit,

For the invoices raised up to 28th February 2015, the time limit of six months will apply. For invoices raised on or after 1st March 2015, the time limit of one year will apply.

As pointed out by Mr. Prathasarathy, the said limit is for taking the credit and not for utilizing the same. i.e. the credit needs to be reflected in the return within the above time limits. Once the credit has been taken, then there is no time limit for utilizing the same to discharge liability of excise / service tax.

Further regarding the restriction on utilization of cess. In case the output liability is of excise, the cenvat credit of cess on inputs and input services received prior to 01st March 2015 (and not 31st March 2015) and pending to be utilized as on 1st March 2015 cannot be utilized as there will be no output liability of cess post 1st March 2015.

In case the output liability is of service tax, then cess is applicable up to 31st May 2015. Hence credit of cess will be capable of being utilized till this date, post which the credit cannot be utilized as there will be no output liability of cess.

Cess charged on inputs/ input services received post 1st March 2015 (in case of manufacturers) is eligible as per notification no 12/2015 - CE.

Also note that in case there is credit of cess pending to be utilized as on the above mentioned dates, then you may avail the same by reflecting in the returns and carry forward the same. In case there is any old matter wherein demand gets raised on assessment / audit or any other reason, then you may be able to utilize the balance credit, subject to fulfilment of all other conditions.

Thanks & Regards

CA Yash Goyal

[Guest]

Thanks allot Sir PARTHASARATHY V and CA Yash Goyal for your guidance and precious time. But sir I also want your advice regarding exemption limit of gta in case of service tax liability , i.e when is limit of RS 750 is applicable and when is limit of ₹ 1500 applicable .

Thank you

Regards

Prathit maini

[PARTHASARATHY V]

Hello Prathit Maini,

As per the Notification No.25/2012 sub clause (b) & (c) of serial No.21 grant full exemption form tax in the following situations.

(a) where the gross amount charged on goods transported in a single goods carriage does not exceed ₹ 1500.00;

(b) where the gross amount charged for transportation on a single consignment of all such goods for a single consignee does not exceed ₹ 750.00

Single consignee ( One consignment or more than one consignments) in single journey should not exceed ₹ 750.00. Hope it is clarified your quarries.

[Guest]

Thanks PARTHASARATHY V ,it is clear now that if a gta is taking a single consignment and delivering it to a single consignee then limit of ₹ 750 will apply .

Regards

PRATHIT MAINI

AI Summary

Cenvat credit time limit extended; credit must be taken within the limit, utilization unrestricted, cess credit subject to cessation dates. The time limit for taking Cenvat credit changed so that invoices dated on or after 1 March 2015 may be taken within one year of the invoice date, while earlier invoices remained subject to the prior six month rule; this limit applies to taking (reflecting) credit in returns, not to its subsequent utilisation. Cess credit is constrained by the cessation of cess liability-credit on inputs/input services received before the relevant cessation date may not be utilisable for output where cess no longer applies, though credits received after the notified date may be eligible and unutilised amounts properly reflected can be carried forward.