credit for input services

krishna iyer (Sr.Finance Manager) (197 Points)

04 May 2011  

In the Finance Bill 2011 lots of changes in service tax .   we are a service receiver- manufacturing company.

Major hit is 100% credit on 17 services withdrawn.  Credit  for exempted goods/services to be reversed.

Please clarify credit eligibility is determined based on date of receipt of service or simply speaking invoice date and not when payment is effected to the party.

For eg-  we receive a bill dated 7.3.2011 for consultancy services.   we make payment during april 2011. still we can claim 100% credit ie. pre-budget position.

 

kindly clarify