Student (b) (875 Points)
17 December 2011
Under Service tax laws, which of the following bills are to be recorded for cenvat credit?
1.Service rendered & bill has been raised by company.
2.Service rendered but bill has not been raised by co.
3. service availed and bill has been recd. by co.
4.Service availed but no bill has been recd.
what is the logic?
thanks
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 19 December 2011
Kirti please refer to Notification No.13/2011 - CE (NT) dated 31.03.2011.
Rule 4(7) of Cenvat Credit Rules has been amended to allow credit of Service Tax on Invoices received after 31.03.2011.
In case payment on above incoives is not made within three months of date of invoice, Credit so availed will have to be paid (through PLA or CENVAT). Later when payment is made, such credit will again be available as per provisions.
In cases where Service Tax has to be paid on reverse charge basis, CENVAT Credit on cash payment basis has been continued.
Further for invoices issued before April 1, 2011, CENVAT Credit on cash payment basis has been continued.
To conclude, Notification does not speaks about provision of service and hence, wherever invoice has been received, CENVAT Credit is allowed subject to the above Notification & CENVAT Credit Rules, 2004.
Refer Link Below for above Notification:
https://www.cbec.gov.in/excise/cx-act/notfns-2k11/cx-nt2k11/cent13-2k11.htm
CA Prabhat Gupta
(Manager (Indirect Taxes))
(821 Points)
Replied 26 March 2012
Hi Kirti,
Please go through the Point of Taxation Rules, 2011 as amended vide Notification No. 4/2012-ST dated 17.03.2012. If still you have a query, feel free to ask.
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