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Invoices

vaibhav (CA & CS) (577 Points)

17 May 2013

Hi,

Today i have received invoices of 2011 from one of my vendor along with old service tax rate @ 10.3% .

My query is :

1) can i do accounting on currect date of 2011 invoices?

2) at what rate service tax should be taken into account i.e. 10.3% or 12.36 %.

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2 Replies

CA Rahul Patel (Passion and Faith) (180 Points)
Replied 17 May 2013

No doubt there is no prohibition for taking cenvat credit on the input invoices as per CCR, 2004 but before availing the said credit one should see the accounting treatment of cenvat paid on such input services. As long as the cenvat credit is appearing in the books of accounts under Current assets at any point of time can take credit and utilise the same for discharging the tax/duty liability. IF the cenvat is not available and made expenditure along with the value of purchases in the P&L account during the respective financial year, such credit is not allowable for availing subsequently since the assessee has opted for inclusion of all taxes in the value as per Accounting Standard 2 in the case of COST OF PURCHASE.