Service tax input credit

This query is : Resolved

Dheeraj Hans (Querist)
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12 July 2011 I have booked one bill for consultancy services which relates to the period 01.04.10 to 31.03.12 and made the full payment in F.Y. 10-11 itself.

I want to book the expense on proportionate basis between these two years but but can i claim the Service Tax Input in one year itself i.e. in F.Y. 10-11.

For eg.

Consultancy Service Dr. 50000.00
Prepaid Consultancy Service Dr. 50000.00
Service Tax Input Credit Dr. 10300.00
TDS on Professional service Cr. 11030.00
ABC & Co. Cr. 99270.00

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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13 July 2011 Claiming Input Credit cannot be linked with Accounting. There are number of cases where for accounting purpose one item is revenue in nature and has to be booked as expense though under Cenvat Credit the same has been categorised as Capital Goods.
In case mentioned by you, you can take entire input credit in the year 2010-11. Further there is no concept of Capital Services.