Cenvat credit of reverse charge

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This query is : Resolved

Neha Gupta (Querist)

06 July 2013 In case of service tax liability under reverse charge, cenvat credit is available only on payment basis i.e. once ST liability for reverse charge is discharged, service receiver is eligible to take cenvat credit.
My query is:
If ST liability under reverse charge for the month of April and May is discharged along with the interest in the month of june, then while making payment for the ST liability for output services for june month, can we claim cenvat for the ST amount paid under reverse charge for the month of april and june.

Arun Kumar Singh

Arun Kumar Singh (Expert)

06 July 2013 Yes, you can take the cenvat credit of duty paid under the reverse charge system for the month of April and May. You can utilise these cenvat for the duty payment in the month of June.

Neha Gupta

Neha Gupta (Querist)

06 July 2013 means if today i will pay reverse charge for the month of april and may and after making such payment while making further payment for output service tax liability today only then we can claim cenvat

Arun Kumar Singh

Arun Kumar Singh (Expert)

06 July 2013 Yes, after the making payment you can claim cenvat credit immediately.

Neha Gupta

Neha Gupta (Querist)

06 July 2013 same will in the case of reverse charge for the month of june also?

Arun Kumar Singh

Arun Kumar Singh (Expert)

06 July 2013 After the making payment in the same month you can take cenvat credit i.e. you have received the invoice on 2nd june and pay the duty under reverse charge system then you will take the cenvat credit in the month of july for the payment of june.

Ganeshbabu K

Ganeshbabu K (Expert)

06 July 2013 Yes..it is same ...you can take cenvat on payment of service tax and can utilize in next month

Neha Gupta

Neha Gupta (Querist)

06 July 2013 today is the last date for making payment of service tax and we have not paid reverse charge since april i.e. for april, may and june, reverse charge liability is still to be discharged.
In case if i will pay reverse charge for all 3 months first and immediately after that make payment for output service tax liabiltiy for the month of june, then cenvat of all 3 months can be taken or not..??
or only april and may month credit is available.?

Arun Kumar Singh

Arun Kumar Singh (Expert)

06 July 2013 you can take cenvat credit immediately because you are making the payment along with interest.

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