Service tax credit prior to production

[madhavvan n]

Can a company accumulate the service tax credit on different services utilized in the period prior to its commencement of production? Is it required to be registered in Excise for the accumulation of Service tax credit or whenever it gets registered in Excise at that time it can claim the credit of accumulated service tax?

AI Summary

Can a company accumulate service tax credits before production without pre-registration? Advisable to register to avoid disputes. A company inquired whether it can accumulate service tax credits for services used before starting production and if registration in Excise is necessary for such accumulation. The response indicated that while there is no mandatory requirement to register before production or providing taxable services, it is advisable to obtain registration upon receiving duty-paying documents to avoid disputes and litigation. This approach is generally supported by the department, especially if the company intends to pay central excise duty or service tax from the first clearance, billing, or collection.