Import of service

This query is : Resolved

karthik (Querist)
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26 March 2012 Dear All,

Can we use cenvat credit to pay service tax liability from import of service?

What is the current rule under cenvat credit.

Pankaj Agarwal

Pankaj Agarwal (Expert)
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26 March 2012 No, cenvat credit cannot be utilised for the purpose of discharge of service tax liability under reverse charge mechanism. It has to be discharged by payment of service tax liability in cash only.

Arvind Tiwari

Arvind Tiwari (Expert)
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26 March 2012 Dear Kartik,
I am totally agree with the Comment of Mr Pankaj but i want add something in that so that u feel less pinch

Whatver cash u pay is available for Cenvat Credit in next month / quarter as the case may be