Cenvat Credit taken but vendor is not depositing Service Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2010 Hi
We are service provider, and taking service tax set-off( Cenvat Credit)on vendor bills, now we get to know that one of our vendors is not depositing service tax and not filing service tax return for last many year but we have paid them service tax and taken CENVAT credit on their bills.

Is there any problem for us?

Shyam Lal Naik

Shyam Lal Naik (Expert)
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11 June 2010 The only condition to avail cenvat on services are:

1) Receipt of invoice under Rule 4A
2) payment thereof

No service receiver is expected to verify Service tax payment by the input service provider.