10 April 2012
My client is a Bank and it has rental premises. In Financial Year 2009-10 the landlord did not charge Service tax on the Rent due to high court order. In the Financial Year 2011-12 the landlord give a letter to pay additional payment towards arrears of service tax for 2009-10 and the bank paid so in 2011-12.
"Now the question is cenvat credit for service tax paid for 2009-10 in 2011-12 will be available to the bank in 2011-12"
If Bank has been paying Service Tax during 2009-10, yes, Bank can very well avail CENVAT Credit. Landlord need to raise supplemewntary bill, indicating rates to be charged (inclusive of Service Tax) less rate already charged in earlier invoice.
CAclubindia
