Cenvat credit of service tax

If the company has made advance payment towards civil construction service during Feb 2011, but no provision has been made for the expense in March 2011. Now bills are booked in July 2011, So whether I would be able to take the cenvat credit of service tax in respect of advance payment made in feb 2011. Please guide

Replies (4)

From 01-04-2011 onwards services in relation to setting up is not input service hence the credit is inadmissible. Regarding taking the credit prior to 01-04-2011, you would have filed ST-3/ER-1 and hence it appears to be difficult.

Sir, I want to know that if i have made the provision of Civil bill expenses at the end of March 2011 (as bill of contractor is not received on that date) Yet, I will able to claim credit of service tax levied on the bill by contractor? (Bill date: 25.02.2011, accounted on 25.07.2011)??

Originally posted by : CA Unnikrishnan Nair N

From 01-04-2011 onwards services in relation to setting up is not input service hence the credit is inadmissible. Regarding taking the credit prior to 01-04-2011, you would have filed ST-3/ER-1 and hence it appears to be difficult.

 

Sir, I want to know that if i have made the provision of Civil bill expenses at the end of March 2011 (as bill of contractor is not received on that date) Yet, I will able to claim credit of service tax levied on the bill by contractor? (Bill date: 25.02.2011, accounted on 25.07.2011)??


 

Advance paid in Feb, bill dated 25-02-2011, failed to prvide for the bill as on 31-03-2011, bill accounted for in July , doubt is whether cenvat credit can be taken in Feb/march. Financial Accouning has nothing to do with cenvat credit. You can claim that the bill stands paid to the exetent of the advance and claim cenvat credit in Feb/march. But you have already filed ST-3/ER-1 for that period. You can try it by revision of return. From 01-04-2011 civil work is not input service unless it relates to repairs.

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