Adjustment of input credit of service tax

[Guest]

If service tax input credit not shown in Service tax half yearly returns by registered assessee and not filed amended returns with in stipulated period whether service tax credit will be disallowed, because the assessee wasn not had the choice of adjustment of Input credit against Out put services and he accumulated input credit for long period. Now he wish to adjust against the similar type of services, whether any Rule, Case Law support this.

[Guest]

Strictly as per Service tax provisions, there is no time limit to either take the eligible CENVAT credit, though Tribunal decisions rendered in the context of earlier CENVAT on excise component fixed six months period for availing the CREDIT. Once the eligible Credit is taken as per the provisions, there is no time limit for its adjustment. Based on this position, you may take the eligible CENVAT credit amount now.

[vineet bansal]

I am fully agreed with the opinion of Mr. V Ramanujam

AI Summary

Service Tax Input Credit Not Timely Filed Can Still Be Utilized; No Time Limit for Adjustment Under CENVAT Credit Rules. A query was raised regarding whether service tax input credit, not shown in half-yearly returns and without amended returns filed in time, would be disallowed. The concern was if accumulated input credit could be adjusted against similar services later. One respondent clarified that, according to service tax provisions, there is no time limit for taking eligible CENVAT credit, although earlier tribunal decisions on excise components set a six-month period. Once taken, there is no time limit for adjustment. Another respondent agreed with this interpretation, suggesting the credit can be utilized now.