25 June 2015
ok I read F.No. 354, importer will be deemed as service provider.
But sir I need to ask you that liability of importer to service tax will arise when he makes payment to the party he imported from as per rule 7 of point of taxation rules.
that's ok
now as per proviso 1 to rule 4(7) of cenvat credit rules importer will be allowed cenvat credit after he pays service tax.
my question is that when as per rule 7 of point of taxation rules the importer tries to raise hi service tax liability in books by crediting service tax what will he debit because as per rule 4(7) he cant take cenvat credit unless he pays service tax, so we cant debit input service tax.
so at the time of raising service tax liability which account will importer debit in his books?
there is a difference between availing and claiming cenvat.
we avail cenvat when we as a service receiver receive invoice from service provider.
we claim cenvat we set it off against output service tax.
am I right?
if yes, then please read the rest.
Proviso to rule 4(7) says the following:
Provided that in respect of input service where whole or part of the service tax is liable to be paid by the recipient of service, credit of service tax payable by the service recipient shall be allowed after such service tax is paid.
what I need to know is that is proviso talking to restrict availing cenvat credit or restrict claiming cenvat credit?