Friends/Experts
I am drawing your kind attention to 2nd proviso to Rule 4(7) of CCR 2004 as amended till date.
In case the payment of value of input service and service tax paid or payable as indicated in the invoice payable is not made within 3 months the SP who has taken credit on such input service shall pay an amount equal to CENVAT credit availed on such input service.
Explanation I : The amount mentioned in this subrule, unless specified otherwise, shall be paid by the provider of output service by debiting cenvat credit or otherwise on or before 5th day of following month.
My query is if this payment needed to be made in cash or by cenvat credit availed has to be reversed.
Regards,
CAclubindia
