Availability of input credit of service tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 October 2015 Our client has provided invoices to L & T Co. with service tax but the payment was actually made by the company without service tax. No service tax is paid as there was dispute, company said that it will be reimbursed after payment made by our client while client said that it will be paid after payment made by company. During dispute period of 5 years, he was not our client.
Now summons from service tax department is received.
If the payment of service tax for the last 5 years is made now, can company claim full input credit for the above mentioned 5 years. Limit of 1 year’s input credit is intoduced w.e.f. april, 2014. Invoices raised before April 2014 are eligible for input credit now ?

Prabhat Kumar

Prabhat Kumar (Expert)
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05 October 2015 In Law in general and in Tax in particular any change in Law construed to be prospective.As service has been provided much earlier and invoice has also been issued before the change in law.you are entitled for the credit after payment of Service Tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2015 Thank You for resolving this quarry, but sir if can you please provide me any reference to this regard so that i can get more details about it

And from which date the credit can be availed and upto which date it can be availed.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2015 Thank You for resolving this quarry, but sir if can you please provide me any reference to this regard so that i can get more details about it