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Carry Forward of unavailed Cenvat Credit in respect of assignment of right to use any natural resource under GST

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Cenvat Credit Rules, 2004 provide that credit of Service paid in a Financial Year, on the onetime charges payable in full upfront or in installments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, shall be spread evenly over a period of three years.

Cenvat Credit Rules have been amended vide notification No. 15/2017-Central Excise (N.T.) dated 12.06.2017 so as to provide that Cenvat credit in respect of such services which remains unavailed on the day immediately preceding the 'appointed day' may be availed of in full on that very day. Appointed day means the day when Central comes into effect. The Amendment would enable service recipients to carry forward such unavailed credit of Service under the regime. As a result Telecom Service Providers, who have been allotted Spectrum in auction conducted in 2016 and have already availed one third credit in respect of Service paid by them, during 2016-17, would be eligible to take the remaining two thirds credit pertaining to 2016-17 in the regime, scheduled to roll-out on 1st July, 2017.

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Carry Forward of unavailed Cenvat Credit in respect of assignment of right to use any natural resource under GST

Cenvat Credit Rules have been amended vide notification No. 15/2017-Central Excise (N.T.) dated 12.06.2017 so as to provide that Cenvat credit in respect of such services which remains unavailed on the day immediately preceding the 'appointed day' may be availed of in full on that very day. Appointed day means the day when Central GST comes into effect. The Amendment would enable service recipients to carry forward such unavailed credit of Service Tax under the GST regime. As a result Telecom Service Providers, who have been allotted Spectrum in auction conducted in 2016 and have already availed one third credit in respect of Service Tax paid by them, during 2016-17, would be eligible to take the remaining two thirds credit pertaining to 2016-17 in the GST regime, scheduled to roll-out on 1st July, 2017. Cenvat Credit Rules, 2004 provide that credit of Service paid in a Financial Year, on the onetime charges payable in full upfront or in installments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, shall be spread evenly over a period of three years.

Cenvat Credit Rules have been amended vide notification No. 15/2017-Central Excise (N.T.) dated 12.06.2017 so as to provide that Cenvat credit in respect of such services which remains unavailed on the day immediately preceding the 'appointed day' may be availed of in full on that very day. Appointed day means the day when Central comes into effect. The Amendment would enable service recipients to carry forward such unavailed credit of Service under the regime. As a result Telecom Service Providers, who have been allotted Spectrum in auction conducted in 2016 and have already availed one third credit in respect of Service paid by them, during 2016-17, would be eligible to take the remaining two thirds credit pertaining to 2016-17 in the regime, scheduled to roll-out on 1st July, 2017.

Powered by Capital Market - Live News

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Carry Forward of unavailed Cenvat Credit in respect of assignment of right to use any natural resource under GST

Cenvat Credit Rules, 2004 provide that credit of Service paid in a Financial Year, on the onetime charges payable in full upfront or in installments, for the service of assignment of the right to use any natural resource by the Government, local authority or any other person, shall be spread evenly over a period of three years.

Cenvat Credit Rules have been amended vide notification No. 15/2017-Central Excise (N.T.) dated 12.06.2017 so as to provide that Cenvat credit in respect of such services which remains unavailed on the day immediately preceding the 'appointed day' may be availed of in full on that very day. Appointed day means the day when Central comes into effect. The Amendment would enable service recipients to carry forward such unavailed credit of Service under the regime. As a result Telecom Service Providers, who have been allotted Spectrum in auction conducted in 2016 and have already availed one third credit in respect of Service paid by them, during 2016-17, would be eligible to take the remaining two thirds credit pertaining to 2016-17 in the regime, scheduled to roll-out on 1st July, 2017.

Powered by Capital Market - Live News

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

image
Business Standard
177 22