V.S.V.S.N.R.Sharma (Accounts Officer) (45 Points)
30 April 2009Respected All,
Sir any one please help me in this topic.
How we can utilise Cenvat input credit on input services. Whether on Accrual Basis(Bill Booking Date) or on Payment Basis.
How we can Pay Out put tax. Whether on Realisation Basis or Accrual Basis
Please provide me the information with relating Sections in CENVAT Credit Rules
Its very urgent
Thanks and Regards
Sharma.V
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 30 April 2009
Vinay
(service)
(36 Points)
Replied 30 April 2009
Service tax is totally dependent on the cash basis. Input tax credit can be taken only when you paid. Credit of input service is taken only after payment is made to service provider of the amount of the bill
Output of tax after netting off the input tax credit if any is to be paid to Govt only when you realise the cash. If you receive the part payment then you need to pay to Govet only to the extent of proportinately.
I think Rule rule 6 (3) ( 1 ), of Service Tax BUT PLEASE CHECK IT
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 01 May 2009
The general rule is on receipt/ payment basis. If part paid/ received that part wouldhave tobe calcuated on backward calcualtion.
For associated enterprises which have been made liable from 10.5.2008, once the same is accrued in the books ST is payable and therefore the converse of availing of credit should also be available. For credit a letter from the AE that they are paying in following month on passing entries maybe obtianed to avoid confusion later.
V.S.V.S.N.R.Sharma
(Accounts Officer)
(45 Points)
Replied 01 May 2009
I treated in my accounts regarding Service Tax as under please give me suggestion with Sec/Rulu No's:
For Service Tax Input:
When i received any bill including Service Tax (Ex: 5,000), I treated that part of service tax as input for that month. ex: Jan-09
Note: I did not paid the bill amount to the party in the same month. I made the payment in the nex month.ex. Not paid in Jan-09, but paid in the month of Feb-09
For Out Put Service Tax
If i realised Rs. 1,00,000 from my coustmer as service tax in Jan-09. I required to pay that amount in the month of Jan-09(Payment on realisation basis).
My Caliculation is Like here:
Out put service Tax = 1,00,000
InPut for the month = 5,000
Service Tax Liability = 95,000
Anoop Garg
(FCA)
(120 Points)
Replied 01 May 2009
For cenvat credit of services only cash basis is allowed,take credit on payment,pay after you collected is the base
Vinay
(service)
(36 Points)
Replied 01 May 2009
You need to pay Rs 1 lac for Jan & get set off for Rs 5000
Open 2 extar accounts for easy understanding -
E.g -
You need to pay Rs 1 lac for Jan & get set off for Rs 5000
Open 2 extar accounts for easy understanding -
E.g - For Services received ( in your case it is Rs 1 lac I have taken Rs 5000)
1)Dt 1st Jan - Service Tax ( ST ) Input Tax credit payable To X Rs 5000
2) Dt 1st Feb X a/c Debit To bank Rs 5000
3) Dt 1st Feb ST Input Tax Credit paid Debit TO ST Input Tax Credit payable Rs 5000
4) Dt 28th Feb - Service tax Payable to Govt Debit ( Set off with received ) To ST Input Tax Credit paid Rs 5000
Hope this entry will help you......... I am not familiar with sections
Thanks, VInay
atul gupta
(proprieter)
(97 Points)
Replied 01 May 2009
sub rule (7) of Rule 4 of CENVAT Credit Rules, 2004 reads as follows:
(7) The CENVAT credit in respect of input service shall be allowed, on or after the day which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or, as the case may be, challan referred to in rule 9. for payment of service tax sub-rule (1) of Rule 6 reads as follows:
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
