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Cenvat credit under late regn

CA Mitesh N Kothari (9821662799) (391 Points)

23 March 2015

Hi,

One of my client done late registration under service tax.

can he issue now issue invoice of previous months with service tax?

Will the other person get cenvat credit on it?

if yes than under what section or is there any notification?

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5 Replies

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 23 March 2015

he cannot issue invoice in the previous date when he didnt have the st registration on such date. without having the number, you are not supposed to mention the st regn number in the invoice. it is not a valid tax invoice. so it is not possible to issue such invoice and input cannot be taken by the service receiver from such invoices.

Thanks

Regards

CA GokulRaj

Tiruchirapalli

CA Mitesh N Kothari (9821662799) (391 Points)
Replied 23 March 2015

Thanks.

Only option left is to pay Service tax , interest , penalty from his own pocket?

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 23 March 2015

Thanks

Of course. however if the st and interest is paid before the receipt of SCN, then he can avoid the penalty. also if no liability of service tax for the assessee could be established by the assessee, then pay the st and interest under protest. then claim the refund of entire sum paid by filing refund application within one year from the scn. if scn not issued then within one year from the duty paid under protest.

Thanks

Regards

CA GokulRaj

Tiruchirapalli

Shiv prakash (000) (87 Points)
Replied 23 March 2015

so it means service tax will be calulated with Inclusive meathod...

and Please clearify or give refrence of any case law where it mention that CENVAT credit of that Service Tax is not available to the Service receiver...i dont find any condition regarding the same which specificaly restrict the Service receiver for taking CENVAT credit

CA GOKUL RAJ R (Chartered Accountant) (151 Points)
Replied 24 March 2015

Dear Shiv prakash,

Please go to the link "https://www.icaiknowledgegateway.org/littledms/folder1/chapter-7-cenvat-credit.pdf" wherein you can find the rule 9 - Documents and accounts. Please gothrough the 8th point in the table. a supplementary invoice, bill or challan issued by a provider of output service except where the additional amount of tax become recoverable from the service provider on account of fraud, suppression of facts etc,

In the given case, he has not even got the registration and the assessee had no objection of that. so it is not possible to service receiver to take cenvat on the receipt of supplementary invoices issued by the service provider who had no registration at the time of issue of supplementary invoice. In case if the assessee has the st registration and issue supplementary invoice for additional duty, then it is well allowable to the service receiver for taking cenvat credit on the supplementary invoice. but it is not applicable to this case.

Thanks

Regards

CA GokulRaj

Tiruchirapalli

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