CENVAT Credit on input services-

The effective date of levy of Service tax on the shipping coastal transaction is 01-Sep-09

Can the Shipping companies avail cenvat credit on the inputs services received before the effective dates

but invoice and payment are on or after the effective dates.

 

eg

The Voyage no. of a shipping company starts 121 in Sep'09 (Income)

The shipping company received an invoice for the voyage no 118 (Expenses)

Invoice date 28-Sep-2009 Payment date 30-Oct-2009

can the shipping company avail the CENVAT Credit ?

 

Replies (1)

Dear Kalai,

In my opinion, If the input services were provided while the output service was not yet taxable, then , CENVAT credit on the input services cannot be availed even if the Invoices remain unpaid after the service became taxable subsequent to provision of input service. Of course, input services received after the output service becomes taxable will be eligible for credit.

Venkatesh Mahadevan

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