Availment of Input credit or apply for refund, Service Tax

[Preeti]

My query is regarding Input Credit. A Co. ABC paid service tax in the year 2004-2005. And the same amount were not taken as credit because of mistake. And now the Co. wants to settle down the service tax liablity for the year 2005-2006 , is it possible to take the credit or Co wil have to apply for refund. Thx.

Posts / Replies

[Surender Gupta]

In our opinion ABC can take the credit of Service Tax on the input services for the year 2004-05 even now, but it must be established and proved that there is a bonafide reason for not availing the credit in the correct preiod, if asked. However, you may not face any difficulty if the time gap is not exceeding one year i.e. for the quarter ending March 2005 you may take credit for the quarter ending Mrach 2006.

[Ajay Manchanda]

Credit should be taken within the reasonable time. Time limit is not defined and according to me the credit canbe taken