Service Tax Set Off

This query is : Resolved

Bharat Rajgor (Querist)
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12 May 2009 I just wants to ask if we are taking credit of Input Service tax in our books at the end of the month & payment is making to the vendor in the next month for that invoice then in such case can we avail the service tax set off against excise duty in the month of taking credit or we have to take credit only after the payment is made to vendor against that invoice

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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12 May 2009 In my View,
You can avail the cenvat credit at the time of credit.
But see that payment is made later on and details can be provided to the Service tax department if asked.

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
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12 May 2009 You can avail CENVAT credit as and when you recive the inovice but utilization would be only after payment of the bill. In this regard, you can set off against Excise duty only after payment of the bill.

Hope the above would clarify.

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