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Cenvat credit

CA Dolly Jain (CA, CS) (223 Points)

05 May 2012

A party "ABC" has issued 8 invoice without charging Service Tax in the month of August to March 1 in each month to the Company "XYZ". ABC is registered 19/03/2012.

Now in the month of March ABC issues Supplementary Invoice for only Service tax on the amount of Invoice issued in the month of Aug-Feb.

Whether XYZ Co. can claim CENVAT Credit of this ST amount.

If yes then as an auditor what documents we require.

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2 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 05 May 2012

Hi,

There are no specific provision in the Act enabling a Service PROVIDER to pass on his liabililty to the RECIPIENT.

As Such, the recipient may not be able to take the benefit of CENVAT credit on such supplementary invoice.

Regards

Prateek

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Vikas (CA) (1135 Points)
Replied 10 May 2012

In my opinion, even though it is not advisable but yes it is possible... even if ABC reverse calculates on all the amounts received then...service tax in total would come to a correct amt...further as an auditor of XYZ you should ask for the confirmation from ABC that they have discharged the service tax liability and further the cenvat register of XYZ has the corresponding entries...