mukesh (CA FINAL) (148 Points)
29 January 2015Can a service receiver book CENVAT if he has paid advance for a service to the service provider?
If NO then if service is rendered after 2 years and invoice is issued then will the service receiver book CCR after 2 long years? doesn't his cash(Service tax) gets block for 2 years
Please reply??
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 01 February 2015
without invoice cenvat credit is not possible, if you need tax credit, then ask the vendor to provide the part by part invoice.
Aditya RVS
(Practice)
(221 Points)
Replied 02 February 2015
Since service tax needs to be payable by the service provider on receipt of advance also, a proforma invoice mentioning the receipt of advance, charging the service tax to the extent of advance and complying with Rule 4A of Service Tax Rules, can be requested from them, on the basis of which, input credit can be taken.
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