23 October 2010
A person(individual) gets service tax registration number in july 2010 (say).
However he is renderring services from start of the F.Y i.e., April 2010.Also he uses taxable input services in renderring such output services.
He is paying the service tax amount along with interest for the two quarters Q1 and Q2 of F.Y 10-11 in october 2010.
Can he avails the credit of input services which are used by him in months of april, may and june (i.e., before obtaining service tax registration number).
Is it mandatory that the assesse should possess ST reg.no at the time of receipt of input services to availd creidt of service tax on such input services?
Please quote any referrence sections.
Note: All bills of input services were paid by the said individual.
23 October 2010
The cenvat credit provisions are facilitating provisions and have benevolent intepretation by courts. As long as ST was paid for the pr qtrs the eligible input services used for the same would also be available. In addtion the capital goods central excise duty would be available 50% in the year of rcpt and 50% in subsequent years. Inputs used in providing services also excise duty would be available for credit provdied that no material deduction claimed.
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