Cenvat credit on import services.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2012 Dear Experts,
Pl address following issue-

Company engaged in construction & development activities. Co. has not started yet to providing a Output Taxable service as, Various projects are under development.In relation to one project co has utilized a import service. Now company are under obligation to pay service tax on Import Services under reverse charge mechanism. The relevant dates are follows-
Date of ST Reg- 28/04/2012.
Date of Service Invoice- 15/05/2012
Date of Payment to Foreign Party-22/06/2012.

Now, my question is-
Whether co can availed a Service Tax credit of above ST payment against ST liability will be arise in future ???

Thanks.

Nilesh

Nilesh (Expert)
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14 August 2012 Service tax liability would be arise from the date of payment. Also, you have to pay the service tax under relevant service category (prior to negative list).

Typically, CENVAT credit avialed can utilized later. However, in your case at the time of payment you are not eligible for credit if you are opting for abatement. The question of CENVAT could be very fact specific