Process of availment and utilisation

[madhavvan n]

new co does not have st / excise regn however has huge input tax can it avail and utilise credit at a later date what is process first availment and thereafter utilisation or only availment is ok to keep claim live

[Madhukar N Hiregange]

It is preferable that if there is a possible future liability under either excise or service tax then the regsitration maybe obtianed ( covering letter to state that purpose is to avail the credit in the setting up period. It couldbe utilised when commercial production/ provision of services takes place.

[Ravi Chopra]

Where the company is availing exempiton, there is no provision for availing cenvat credit on inputs and input services. However, if you are in the process of setting up of a unit, but no activity has been started till now, you can obtain the registration and start avialing credit. The credit can be used in payment of duties of excise or service tax as and when you would start your activities which is chargeable to tax.

AI Summary

Cenvat credit availment: registration during unit setup allows claiming and later utilisation when taxable activity begins.
Cenvat credit can be availed during the setting-up period if the entity obtains registration (with a covering letter indicating the purpose) and may be utilised later when commercial production or taxable services commence; entities operating under an exemption that precludes credit cannot claim cenvat on inputs or input services.