Input credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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?

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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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

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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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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