Unpaid Input Service Tax in FY 2010-11

[Asked by Guest]

I want to clarify can we carry forward input service tax for cenvat purpose in next year or reverse it in Profit & Loss Account. Explanation: All the input Service Tax which not paid upto March 2011 can be claimed in next year means 2011-12 . Thanks in advance

[CA Rachit Agarwal]

Cenvat Credit unutilized can be carried forward. There is no requirement for the reversal. Hence the amount can be claimed.

Dear Mr Rachit

Pleast let me clear only the treatment of unpaid input service tax at the end(March end) of any financial year

AI Summary

Unpaid input service tax: unutilized Cenvat credit may be carried forward rather than reversed at year end.
The discussion concludes that unpaid input service tax at financial year end constitutes unutilized Cenvat credit which need not be reversed to the profit and loss account and may be carried forward and claimed in the subsequent financial year.