Service tax credit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 December 2011
IN F.Y. 2011-12 IF THE RECEIVER OF THE SERVICE TAKES THE CREDIT OF SERVICE TAX AND NOT MADE THE PAYMENT TO THE PARTY WITH IN 90 DAYS. NOW WHETHER THE RECEIVER OF THE SERVICE WILL BE ELIGIBLE TO TAKE THE CREDIT OF THE SERVICE TAX OR NOT
02 December 2011
As per second proviso to Rule 4 (7) of CENVAT Credit Rules, 2004
Provided further that in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9, is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules:
Thus it is clear from the above provision that if payment is not made within 3 months from the date of invoice etc then amount equal to the credit taken on input services shall be paid by the assesse. Assessee can again take CENVAT credit when he will made the payment in respect of such input services.
If u r satisfied by my reply then say thanks by clicking on "THANK USER".
Provided further that in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9, is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an amount equal to the CENVAT credit availed on such input service and in case the said payment is made, the manufacturer or output service provider, as the case may be, shall be entitled to take the credit of the amount equivalent to the CENVAT credit paid earlier subject to the other provisions of these rules:
Thus it is clear from the above provision that if payment is not made within 3 months from the date of invoice etc then amount equal to the credit taken on input services shall be paid by the assesse. Assessee can again take CENVAT credit when he will made the payment in respect of such input services.
If u r satisfied by my reply then say thanks by clicking on "THANK USER".
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- NON- SUBMISSION OF LLP FORM 3
- Last year TDS Claim
- Regarding IMS Mandatory from 1st July 2026
- Free lancer income
- What is provisional receipt number for generation of form 16A
- BIS Certificates
- RNOR Status but Investments more than Income
- Scrutiny assessments u/s 143(2) for AY 25-26
- GSTR-4 Annual Return ! Pending Returns for F.Y. 20-21 to 22-23
- Share accounting-->fifo - capital gain - period as per fifo?
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
