Service tax query

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This query is : Resolved

Kantilal P. Kshirsagar (Querist)

17 August 2011 I want to know if there is any change in taken of Service Tax input credit w.e.f. 1st July-2011 (earlier it's taken on payment basis Payment made to party which include ST Input Credit i.e. payment basis

your early response more beneficial to me

Thanks & Regards,
Kantilal

CA Navin Jain

CA Navin Jain (Expert)

17 August 2011 CENVAT credit in respect of input service shall be allowed, on or after the day on which the
invoice, bill or, as the case may be, challan referred to in rule 9 is received

Kantilal P. Kshirsagar

Kantilal P. Kshirsagar (Querist)

17 August 2011 Thanks Sir your advise

but I want to know earlier ST Structure is

Output ST (Payment received in month)
Less:Input Credit (Payment made in month)
=============
Service Tax Payable

What is the structure w.e.f. 1st July-2011

could you please clear my doubt

CA Navin Jain

CA Navin Jain (Expert)

17 August 2011 just like vat payable

Kantilal P. Kshirsagar

Kantilal P. Kshirsagar (Querist)

17 August 2011 Thanks again for ur valuable advise

Sir, still i have some query

Example
============
My billing for Aug-2011 is 1,00,000/- therefor my Service Tax liability is come Rs. 10,300/-

on the other hand

I am booking the Vendor bills & suppose my Service Tax Input Credit Rs. 5,500/-

At the end of the month of Aug when i making the payment to ST Dept

Advice me it is the Right method or not for making the Payment of ST Liability

Service Tax payment for Aug-2011
======================================
Output Service Tax 10,300/-
Less: Input Service Tax 5,500/-
======================================
Service Tax Payable 4,800/-

(NOTE : I wanted to know like Output Service Tax on Selling (i.e. Billing basis)
it is applicable for Service Tax Input Credit (Input Service Tax Credit on Vendor Bills Booking basis because (earlier it is on Payment basis)