Can Credit be avialed on Advance Payment?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2010 Hi,

I need a clarificaiton on availment of Cenvat on payment of advance.

In this case Company A (Service Provider) has raised a Invoice to Company B (Service Receiver) for Rs.100000 plus Rs.10300 (Service Tax)for service to be rendered in next six months from the date of payment. Company B made the payment on 1/10/2010. My quary is whether Company B avail the credit of Rs.10300 in the month of October or it will proportionate of the service receivable in next six month.

Please clarify. Also attach notification,if any.

Regards
Manoj

CA Punit

CA Punit (Expert)
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01 October 2010 Service tax credit can be taken immediately after payment thereof... so B can avail credit of 10300 in October

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 October 2010 yes,if you have the Tax paid proofs you can take the credit

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