Utilising Cenvat Credit for making service tax payment

[Guest]

can cenvat credit not availed for the previous year 2005-2006 be availed while making payments of service tax of financial year 2006-2007. also if cenvat is not included for making payment of one month, then can it be taken regard while making payment of next month

[Surender Gupta]

There is no restriction on availmnet of Cenvat Credit belated. However, time gap must be reasonable i.e. maximum one year and delay must be genuine.

AI Summary

Can Cenvat Credit from 2005-2006 be used in 2006-2007? Yes, if delay is genuine and within a year. A participant in a discussion forum inquired whether Cenvat Credit not utilized in the previous financial year (2005-2006) could be used to pay service tax in the following year (2006-2007). Additionally, they asked if unused Cenvat Credit for one month could be applied in the subsequent month. The response clarified that there is no restriction on delayed utilization of Cenvat Credit, provided the time gap is reasonable, ideally not exceeding one year, and any delay must be genuine.