Cenvat credit

This query is : Resolved

PRANAY JAIN (Querist)
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31 July 2011 Dear Sir,
Mine is a partnership firm, if have made some advertisement expense in June11 and received a bill in June11 but made payment in July11, in which quarter i am eligible for Cenvat Credit,Q1 or Q2 under new Point of Taxation Rules. And in second case if have received a bill in Sep11(i.e. First Half) and payment made in Oct11(i.e.Second Half) how can i claim Cenvat Credit.

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
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01 August 2011 Dear Pranay,

As per the circular No. JS TRU(II)dt. 31/03/2011 issued by Service Tax Department Point of Taxation Rules have been amended and so the point of Credit.

The Credit of input service under rule4 (7) of the Cenvat Credit Rules also been liberalized vide notification No. 13/2011- CE (NT) dated 31.03.2011 and the same shall be available on receipt of invoice as long as the payment is made within three months.
Hence in your case
1. Since Bill is Received in June-11 and Payment in July-11 satisfied the criteria of the Act and eligible for Credit in June-11 (i.e Q1 itself)
2. In Second Case- In the month of Sept-11 (i.e) Q2 you can take the cenvat Credit.

With Regards,

Nishad