what would be the treatment when seervice tax paid on any bill which is payment in advance by nature. Whether CENVAT credit can be availed in the month in which entire ppayment is made or proportionate?
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Cenvat Credit
Replies (4)
yes.
you can utiise the credit.
once it is paid it can be utilie.
you r utilise the input credit after the make payment......
There are twin requirement to utilise credit on input services.
1. Receipt of bill/invoice etc. issued per Rule 4A of Service Tax Rule
2. Payment of the bill including the tax thereon.
Both the conditions needs to be satisfied.
Hence, in case of advance payment, you will be eligible to take credit on receipt of bill only.
Hi
I agree with Shyam Lal Naik. Rules of CENVAT requires payment of value of Service plus all taxes thereon so till the time payment of whole bill is not made you can not avail or utilise the service tax portion on the bill.
Warm Regards.
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