Cenvat credit

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Yogendra Chauhan

Accounts Manager

23 Points Posted on 06 December 2011

Dear All,

As per new ammendment we are liable to pay service tax on accural basis.

Please suggest me can I enjoy the cenvat credit on accural basis also.

(as my company have not paid any payment to our service provider, & if we take cenvat credit on accural basis, and our service provider had not paid service tax timely)

Or before take credit, I should cross check of my service provider ,has he paid tax. (Is it my responsibility to check it ?)

What will be our position in the above mention situtation..

Please help me.............

Replies (2)

Pinky Agarwal

Chartered Accountant

459 Points Posted on 07 December 2011

Originally posted by : Yogendra Chauhan
	Dear All, As per new ammendment we are liable to pay service tax on accural basis. Please suggest me can I enjoy the cenvat credit on accural basis also. (as my company have not paid any payment to our service provider, & if we take cenvat credit on accural basis, and our service provider had not paid service tax timely) Or before take credit, I should cross check of my service provider ,has he paid tax. (Is it my responsibility to check it ?) What will be our position in the above mention situtation.. Please help me.............

Yes you can take the credit on billing basis provided you make the payment to input service provider within 3 months.

For further clarification refer Notification No. 13/2011 - Central Excise (N.T) dated: 31.03.2011

Regards,

Pinky Agarwal.

CA Unnikrishnan Nair N

Chartered Accountant

2114 Points Posted on 07 December 2011

Pinky gives correct answer . But to suppliment, if service tax is payable under reverse mechanism, then credit can be taken after payment of the bill amount and service tax.