Cenvat crdit

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Ajay (Querist)
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26 November 2014 Dear Sir,

I Would like to know that can we claim cenvat credit of service tax in A.Y. 2014-15 if the same is belong to A.y.2013-2014. Payment of the same is also made by Service Provider in A.y. 2013-2014 but the bill for the same is not received, so we try to record it in A.y.2014-15. I just want to know can we do the same? Or is there any other better way to do it?

CA Hardik Bunha

CA Hardik Bunha (Expert)
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26 November 2014 no you can not take credit of the same,
credit of service tax paid is on base invoice received irrespective you have paid the invoice or not.
refer rules

Ajay

Ajay (Querist)
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26 November 2014 we had not received the invoice yet but if i received invoice then can i claim it? But the other question is that how to record it in Accounts as the same is belong to earlier year? Please help

Ravi Jhamb

Ravi Jhamb (Expert)
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26 November 2014 Now Service tax dept. issued circular. We can not take cenvat credit beyond six month old bill. it's best for you ignore it else u will have to pay with interest.

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CA Hardik Bunha

CA Hardik Bunha (Expert)
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26 November 2014 My freind you can not take CENVAT CREDIT if u r a manufacturer.

if u r a service provider then you can take credit.

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Ravi Jhamb

Ravi Jhamb (Expert)
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26 November 2014 As per proviso to rule 4(1) and sixth proviso to rule 4(7) of Cenvat Credit Rules (inserted w.e.f. 1-9-2014), Cenvat credit must be taken within six months from date of issue of any duty paying document (invoice, bill of entry, GAR-7 challan etc. as applicable).

There are separate provisions where service tax is payable on reverse charge basis

Note that the time limit is only for ‘taking credit’. There is no time limit for utilisation of Cenvat Credit. Once you ‘take’ Cenvat credit in your records, you can utilize it any time without any time limit.

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Ajay

Ajay (Querist)
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26 November 2014 as per new notification limit of six month is for both service provider and for manufacturer too. My question how to record it in books of account if bill is received late

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 November 2014 There is no limitation for both claiming and utilization of cenvat credit
if
at the time of utilization of service assessee was eligile to claim cenvat credit.

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