Transitional Credit to be written off

[Kaustubh Karandikar]

a) XYZ Pvt. Ltd. have unutilised balance in Excise PLA A/c from F Y 2014-15 onwards under Education Cess and SHEC. Post GST XYZ also applied for refund through ACES portal, but did not receive the refund. Whether this amount is required to be written off in the books of accounts? The statutory auditors want confirmation on the same. b) XYZ paid service tax under RCM as per Excise Audit of Apr-16 to June-17 with interest & penalty. This amount could not be claimed post GST introduction. Whether this amount to be written off in books of accounts or to keep under receivables? The statutory auditors want confirmation on the same.

AI Summary

XYZ Pvt. Ltd. advised to write off unclaimed Excise PLA balance and service tax due to low refund chances. XYZ Pvt. Ltd. has an unutilized balance in their Excise PLA Account from fiscal year 2014-15 related to Education Cess and SHEC, for which a refund was applied but not received. The statutory auditors require confirmation on whether this amount should be written off. Additionally, XYZ paid service tax under reverse charge mechanism as per an Excise Audit from April 2016 to June 2017, which could not be claimed post-GST introduction. The response suggests that due to low chances of receiving a refund or claim, both amounts should be written off in the books of accounts.