06 October 2011
If payment of invoice is made after the prescribed limit i.e. six months in case of Import of Services, then will Cenvat Credit be available on subsequent payment of Invoice.
28 October 2011
As per the amendment brought in by the Finance Act'2011 cenvat credit of service tax on imported services can be availed at the time of payment of invoices provided payment to the service provider is made within the precribed time frame of six months. If however, payment is not made to the vendor within six months from the date of raising of invoices then the applicable rate of service tax is required to be discharged along with interest from the date of raising of invoice and the exemption of six months will not be available. Cenvat credit of service tax paid after six months will be available.
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