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

AI Summary

New Companies: Register for Excise or Service Tax to Utilize Input Tax Credit; Exemptions May Restrict CENVAT Credit Use. A new company without service tax or excise registration inquired about availing and utilizing input tax credit. An expert advised obtaining registration if there's potential future liability under excise or service tax, allowing credit utilization once commercial activities commence. Another expert noted that if the company is exempt, it cannot avail CENVAT credit on inputs and services. However, if setting up a unit without starting activities, registration can be obtained to start availing credit, which can be used for excise or service tax payments once taxable activities begin.