delay in filing service tax return, Service Tax

[apeksha patil]

can one carry forward cenvat credit even if he fails to file service tax return in time?

Posts / Replies

[Pradeep Khatri]

Yes, you can.

[Naveed S]

Yes, but  Penalty may be imposed for late filing of Service Tax Return and such Penalty is required to be paid in cash only and can not be adjusted from the available cenvat credit balance.

[vijay kumar]

Yes. There is no bar to carry forward the credit balance, even when a return is not filed in time. Such credit can be used for payment of tax also since availment of credit and tax payment are not linked to filing of return. However, delay in filing return attracts late fee in terms of Section 70 of the  Finance Act, 1994 read with Rule 7 of the Service Tax Rules, 1994 which can extend upto Rs.20,000/-. Secondly, Department can issue the notice within one year/five years from the date of filing the return, as the case may be. Regards - Vijay Kumar.