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At what point Service Tax Credit can be claimed.

1288 views 2 replies

vaibhav

66 Points Joined May 2007

As per cenvat, credit of input service can be claimed if payment for the smae is made,

So cheque issued is to be considered as payment or date when same is cleared is considered as payment??

EG. If cheque issued to party on 28/01/2007 &b cleared in bank on 06/02/2007. So in which month credit can be claimed??

Replies (2)

Snehal

SERVICE

48 Points Joined October 2007

when cheque is cleared i.e. debited in payer's bank a/c , CENVAT can be claimed

Dayal

Gen. Manager - Indirect Taxation

3451 Points Joined October 2007

Credit can be claimed in Feb 2007 and can be utilised for payment of liability in the month of March 2007. Mere making the payment will not make you eligible for the credit, though you may account for in your books, but utilisation can happen only when the payment has been realised by the service provider and your bank account has been hit by that amount