Cenvat credit

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Sriram (Querist)
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12 August 2011 I have paid service Tax on cash basis after adjusting cenvat credit. But I have taken input credit (cenvat credit) on credit basis. Whether is it Possible? Advise about this.

U S Sharma

U S Sharma (Expert)
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12 August 2011 follow any one method of accounting, now mercantile system of accounting confirms all such transactions.

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Preety Parik

Preety Parik (Expert)
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12 August 2011
Do U mean to say that u have claimed input credit pending payment of Bill of Input Service?? If this is the case, please note that credit of service tax can claimed only after the payment of Input Service Tax. That means service tax payment on input services has to be made and then credit of Input Service Tax can be claimed.

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U S Sharma

U S Sharma (Expert)
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05 September 2011 from 01/07/2011, service tax is payable on billing basis (or payment, if payment is made in advance only), but it can not be delayed after making bills.

similer way, the input credit is available on bill receipt basis, and not on payment, but in non payment within 90 days of bills, such input credit taken would be reversed.

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