Service tax credit for advance payments made

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HI

I have made an advance payment to input service provider for Rs. 150000 can i claim service tax credit on such payment using grossing up method

Also in respect of advance payment of mobile bill can i claim service tax credit on Rs. 3400 i paid in advance for full year on 22/02/2010 using grossing up method


Grossing up method i mean presuming i paid amount inclusive of service tax @ 10.3% and then calculating amount of service tax.

please reply immediately with relevant case laws on the matter if any.

Replies (8)

Cenvat Credit can avail on payment, you can take cenvat credit on advance payment also.

Originally posted by : rohitgupta


HI

I have made an advance payment to input service provider for Rs. 150000 can i claim service tax credit on such payment using grossing up method

Also in respect of advance payment of mobile bill can i claim service tax credit on Rs. 3400 i paid in advance for full year on 22/02/2010 using grossing up method


Grossing up method i mean presuming i paid amount inclusive of service tax @ 10.3% and then calculating amount of service tax.

please reply immediately with relevant case laws on the matter if any.

Dear Rohit,

In the absence of a valid document no cenvat credit can be availed. In case of advacne payment ask the servic eprovider to raise raise an invoice for advacne with ST and then only you can avail the credit. There is deemed credit provision presently for input services.

Warm Regards

Madhukar

 

 

Originally posted by : Madhukar N Hiregange





Dear Rohit,

In the absence of a valid document no cenvat credit can be availed. In case of advacne payment ask the servic eprovider to raise raise an invoice for advacne with ST and then only you can avail the credit. There is deemed credit provision presently for input services.

Warm Regards

Madhukar


Yes, 

I agree with u sir


 

 


 

hi,

    In case of any assessment the proof of payment of cenvat credit lies in the hands of the assesse. so it is better to get an invoice raised for the service tax paid and then avail cenvat credit on it..

Originally posted by : swathi jain

hi,

    In case of any assessment the proof of payment of cenvat credit lies in the hands of the assesse. so it is better to get an invoice raised for the service tax paid and then avail cenvat credit on it..

agree

Dear Madhukar Sir,

In case of service tax input credit on advance payment without invoice, can we claim ST input credit.

Can we have any other valid document apart from Invoice for instance - a work order or Purchase order or Contract which stats the Service Tax applicability.

Can you please reply as soon as possible.

 

Rgds,

 

JKC

Dear Sir,

Based on the Service Tax Invoice raised on you is the document, based on which U can avail cenvat Credit.

In case of Telephones, cell operator bill, in which mention about their registeration no and other details are incorporated.

Since the ownerous of proving the credit rest on the Assessees, you should avail credit based on the documents/invoice only

kkswamy

 

 

what if i have not received the service. but service provider is raising a debit note for service tax portion.


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