| Centvat credit Rule 4(7) stipulates that tax credit in respect of input service shall be allowed on or after | |||||||||
| the day on which payment is made to the input service provider for the service provided. | |||||||||
| this is an important condition which must be noted. | |||||||||
| tax credir can be taken by output service provider at the earliest only | |||||||||
| on the date on which he settles the bill of the input service provider | |||||||||
| and even then take credit only for the amount of service tax | |||||||||
| , education cess and SHEC on taxable services | |||||||||
| indicated in that bill,or invoice,or challan as the case may be. | |||||||||
| Regards | |||||||||
| K.Ilayaraja | |||||||||
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