Input credit availability

we have a client who is into logistic and cha business. now they are paying rent to port authority for which port is charging service tax. but our client will give 30 days free period for their clients. after 30 days they will recover whatever rent paid to port authority. The qstion is can our client avail cenvat on those 30 days for which they will not bill to clients? please give some references to ur answers. thanks in advance.
Replies (2)

as per Rule 3 CENVAT Credit rules 2004  A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit of Service Tax leviable under s*xtion 66 of finance act. So there is no where written in the Rules regarding taking of credit based on any subsequent events say in your case about 30 days free period. If your client has invoice in his name for the Rent charges then as per the above provisions your client can very well take the credit of service tax paid irrespective of the fact pertaining to 30 days free period. Do refer the below link : https://servicetax.weebly.com/cenvat-credit.H T M L

as per Rule 3 CENVAT Credit rules 2004  A manufacturer or producer of final products or a provider of taxable service shall be allowed to take credit of Service Tax leviable under s*xtion 66 of finance act. So there is no where written in the Rules regarding taking of credit based on any subsequent events say in your case about 30 days free period. If your client has invoice in his name for the Rent charges then as per the above provisions your client can very well take the credit of service tax paid irrespective of the fact pertaining to 30 days free period. Do refer the below link : https://servicetax.weebly.com/cenvat-credit.H T M L

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