Centat on input services

This query is : Resolved

Debasis Mukhopadhyay (Querist)
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18 December 2014 Is it necessary for an output service provider to check whether the Input Service provider has registration of necessary service under Service Tax Act for availing CENVAT credit ? For eg. if Mr A is willing to avail CENVAT on manpower service provided by Mr B, is it necessary for Mr A to check whether Mr B has registration in Manpower service ? Or, such cross-checking is not required and Department cannot disallow the credit on the ground that such verification was not done by the Assessee ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 December 2014 No CENVAT credit under sub-rule(1) shall be taken unless all the particulars as prescribed under the Central Excise Rules, 2002 or the Service Tax Rules, 1994, as the case may be, are contained in the said document:

If the invoice contain all the details required above no need for further verification.

Rupesh Jain

Rupesh Jain (Expert)
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18 December 2014 r.sir

you have to check the invoice on which you are taking cenvat then on which party name, registration no. bill no also mention otherwise you can not take the cenvat.

Debasis Mukhopadhyay

Debasis Mukhopadhyay (Querist)
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19 December 2014 But suppose Invoice is in order though details mentioned therein mismatched with the latest ST-2 of the person raising the Invoice. My question is : What will happen in that case ? Like if the service provider claims service tax on certain service but he does not have registration in that particular service , can service receiver still claims CENVAT on that Invoice ?