Service Tax Credit on Loan Processing Charges

[akhilesh shrivastava]

Dear Sir/Madam,

My query is as under :

How to claim service tax credit on Loan processing charges? Whereas bank is not giving any service tax bifurcation in it's statement. Than what should we do? Which option is best for us: First prepare a statement in which service tax portion separated from bank charges and submit it to the bank for its confirmation or Second only bank statement is sufficient to take ST claim .

Further, can we take service tax credit on bank charges related to the fy 2013 in the current period. What is the rule in this regard. Pl advise.

With Thanks,

AI Summary

Cenvat credit limitation prevents late claims; certified bifurcation of bank charges required to claim input credit.
Under Rule 4(7) of Cenvat Credit Rules, credit must be availed within one year from the date of issue of invoice, calculated from the date of the bank statement; service tax on loan processing charges paid outside this one year period is ineligible and delay cannot be condoned. To claim credit, obtain a statement separating bank charges and service tax certified by the bank or, if the bank refuses, certified by a Chartered Accountant or Cost Accountant.