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Cenvat of service tax

vaibhav (CA & CS) (577 Points)

30 June 2013  

Dear All,

when can Service tax cenvat credit be claimed ...... on booking or payment basis.

Suppose i booked a bill of Rs 1 Lakh for audit fees in DEC 12 and made the payment in June 13 .......so when i can take the benefit of CENVAT...... in dec 12 or June 13.


 6 Replies

Devendra (Chartered Accountant) (4765 Points)
Replied 30 June 2013

The Cenvat credit can be claimed in December 2012. No need to wait to take the Cenvat credit till the payment is made.



Devendra Kulkarni

1 Like

Sumit Grover (Chartered Accountant ) (3647 Points)
Replied 01 July 2013

Second Provisio to Rule 4(7) of CENVAT Credit Rules, 2004 states that CENVAT can be availed on the date of receipt of invoice(i.e. on due basis). However, if the payment to the Vendor is not made within three months from the date of invoice, then the CNEVAT Claimed earlier needs to be reversed. 

So, in your case, though you could claim CENVAT in Dec'12, but since you had made payment in June'13(i.e. beyond three months), you should have reversed CENVAT in March'13. and subsequently avail the same in June'13.


3 Like

Nimish Jain (Internal Auditor/CA final student)   (240 Points)
Replied 01 July 2013

I totally agree with Mr. Sumit Grover.

1 Like

Jagdishkumar M Gor (GM-TAXATION) (83 Points)
Replied 02 July 2013

Yes, Mr. Sumit has given the reply as per the law. so it is better that we should take the CENVAT credit of service tax after payment. If we sure that we will make the payment within 3 months then we can take the credit at the time of booking of bills. so to avoid reversal and litigation.


Jagdish M Gor

1 Like

Saket Khaira (3 Points)
Replied 29 May 2016

How much cenvat credit we can avail ?

Is it 100% service tax paid on input services or in proportion ?

ravi teja (CA) (37 Points)
Replied 01 June 2016

The Service tax shown in the Invoice you can cliam 100%

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