Input credit confusion

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Please tell me In which month we can claim service tax input credit if invoice date in Jan-11 but payment made is In June-11.

Sumit Grover

Sumit Grover (Expert)
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29 March 2013 As per Rule 4(7) of CCR,2004, CENVAT of service tax is allowed to be taken on the basis of invoice(i.e. invoice date) subject to the condition that the payment to the vendor(service as well as service tax) shall be made within three months from the date of invoice.
In your case, you could avail & utilise the CENVAT in the month of jan'11, but thereafter you need to reverse the same with interest after the expiry of three months.

And thereafter, you shall be entitled to avail the CENVAT in June'11 once again.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 If I make payment for Jun-12 Invoice in July 12. So should I report that in Quarter 1 return or Quarter 2.

The return for quarter 1 has already been filed. So can we book it in Quarter 2.

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Sumit Grover

Sumit Grover (Expert)
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29 March 2013 In case you have not availed in Jun'12, you can definitely avail & utilise in July'12......

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2013 Thanks for your prompt reply.