Pinky Agarwal (Chartered Accountant) (426 Points)
14 November 2011Dear member,
Please advice on the following query..
Suppose A & B had jointly taken a property on the rent and the rent is paid by them in the ratio of 2:1. But bill is raised by landowner in the name of "A". Whether B can take credit on the basis of this invoice for his part of service tax paid on rent. Or what should be correct procedure for claiming Cenvat Credit??
Regards,
Pinky Agarwal.
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 14 November 2011
No he cannot claim cenvat credit in the ratio of 2:1, because invoice is raised in the name of "A "
alternatively A and B can asked for two seperate invoices for the same property which clearly mentions 2:1 ratio then they both can avai the respective credit.
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 15 November 2011
Proper documentation can avoid disputes under cenvat credit . If B takes credit from bill raised on A, department may challenge the genuiness. Further, under CCR, the burden of proof lies upon the assessee. Better to get separate bills as suggested by Shri. Rajesh Choudhary.
CAclubindia
