Availment of Cenvat Credit on Input Service Bills

Vijay Bhatti (Senior Manager - F&A) (32 Points)

21 November 2009  

Request guidance on Statutory provisions under Service Tax Act on

1) Can proportionate Cenvat Credit of Service Tax on Input Service vendor Invoice which are paid for partly be taken or not ? e.g. Vendor Invoice is Rs. 100 Basic +10.30 Service Tax total 110.30. Service tax is accounted as Receivable in this case as this is input service in Nov'09. Part payment of Rs. 50 is made to the vendor in Nov'09. Balance payment will be made in the month of Jan'10. can Proportionate Cenvat Credit of Rs. 5.15 of Service Tax be taken in Nov'09 towards part payment of Rs. 50 to the vendor ?

2)  Will the decision be different in case a) vendor is Third party 2) vendor falls within Associated Enterprice i.e. Group company. ?