Utilization of Cenvat

[Guest]

Dear Sir,

I am working in a company, where we have two division one is called Transport and another one is Clearing.

I have received an Invoice towards Rent and I used to utlize that cenvat against Transport division but for the month of Feb 2015 I have made excess payment for Transport DIvision and Now Insted of going to refund I wanted to utilize that cenvat for Clearing division.

I still have not filled service tax retrun.

Can I utilize that Rent cenvat with clearing divsion, is there any specific rule for utlilizing cenvat.

[Mahir S]

Sir,

I would suggest you to adjust the excess service tax payment in the next service tax return.

[Guest]

Dear Sir,

Thanks for your reply, but the problem is that I have made excess Interest payment and not Service Tax that why I wanted to transfer my cenvat to another division so that the liability in this dept will get increase and excess interest will get adjusted with that liability and in clearing division I would pay less liablity and less Interest.

Please adivse.

[Mahir S]

Sir,

Interest cannot be adjusted against service tax payment.

If interest would have also been adjusted against service tax payments, then assessees would not pay taxes on the due date and pay later with interest, and then utilize the interest too for tax payments

[DR.MARIAPPAN GOVINDARAJAN]

If interest is paid in excess the same may be got refunded from the department.

[Ganeshan Kalyani]

Rent is a common service both for transport division and clearing division and hence cenvat credit of service tax can be utilized for both liability under transport division and clearing division. However as you have said that interest has been paid excess, it can be applied for refund and cannot adjusted with service tax liability.

AI Summary

Seeking Advice on Applying Cenvat Credit for Rent Across Divisions; Refund Excess Interest Payment Suggested An individual working in a company with two divisions, Transport and Clearing, seeks advice on utilizing Cenvat credit from a rent invoice. After making an excess interest payment for the Transport division, they wish to apply the Cenvat credit to the Clearing division instead of seeking a refund. Responses suggest adjusting the excess service tax payment in the next return, but clarify that interest cannot be adjusted against service tax payments. It is recommended to apply for a refund of the excess interest, while Cenvat credit for rent can be used for both divisions' liabilities.