20 September 2012
In case of continuous on account payments to service provider how the Input Credit should be taken. Should we bifurcate each payment to different bills?
20 September 2012
Cenvat Credit is available against the Service tAx invoice. therefore, you should avail credit on the basis on invoice raised by your service provider, payment of bill is relevant for availment of credit.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
20 September 2012
Thanks for the reply but perhaps you couldn't understand my query. In our company lump sum payments are made to service providers. Here my query is, how should I take input credit of service tax when one to one relation cant be established b/w payments and bills. sometimes balance is debit and sometimes it's credit
21 September 2012
In this case as per my opinion for availment of CENVAT Credit Service Tax invoice is mandatory. In this case you would have to track the invoices periodically, and then avail credit for only those invoices for which you have made payment. In case of services in which reverse charge is applicable you can take credit on the basis of challan of payment of ST.
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