what would be the treatment when seervice tax paid on any bill which is payment in advance by nature. Whether CENVAT credit can be availed in the month in which entire ppayment is made or proportionate?
4 Replies
AMIT
(STUDENT)
(43 Points)
Replied 19 August 2009
yes.
you can utiise the credit.
once it is paid it can be utilie.
Vivek Jarial
(Student)
(272 Points)
Replied 18 September 2009
you r utilise the input credit after the make payment......
Shyam Lal Naik
(Service)
(6156 Points)
Replied 19 September 2009
There are twin requirement to utilise credit on input services.
1. Receipt of bill/invoice etc. issued per Rule 4A of Service Tax Rule
2. Payment of the bill including the tax thereon.
Both the conditions needs to be satisfied.
Hence, in case of advance payment, you will be eligible to take credit on receipt of bill only.
Gautam Joshi
(Partner)
(361 Points)
Replied 06 October 2009
Hi
I agree with Shyam Lal Naik. Rules of CENVAT requires payment of value of Service plus all taxes thereon so till the time payment of whole bill is not made you can not avail or utilise the service tax portion on the bill.
Warm Regards.
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