Service Tax Input Credit

Dear Friends,

                  Our Client is eligible to avail Sercice Tax Input Credit, on the  year end They had made a provision entry for outstanding expenses  it includes Security Charges and its Service tax. Whether Is it allowable to avail Service tax input credit on the year end itself based on the Provision or  in which month they actually made payment to the Creditors.     

Replies (2)

credit available on payment basis only, not on accounting basis

Credit is available normally after the payment only for arm length transactions..

Where the services are from associated concerns the credit would be admissible from the date of payment of the service tax.

Where the service tax is paid on reverse charge then also the credit is available from the date of payment of service tax. The service itself may not have been paid.

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