30 April 2014
Ever since Service Tax was made payable on accrual basis we are paying it on accrual basis but my query is that the setoff of the input services received can also be taken on accrual basis or still it has be adjusted only after payment.
Is necessary amendment made in Cenvat Credit Rules to allow the input on accrual basis?
01 May 2014
Necessary amendment is done but with a rider. One can take credit on accrual basis. However, if the payment of the invoice on the basis of which credit was taken earlier, is not paid within three months from the date of invoice, the credit taken shall be reversed and will be available only on payment basis.
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