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Input tax credit

Queries 551 views 3 replies

HI

If we fail to recover the Service Tax from our customer after 5 year we recover tax from same customer.

Customer asking me it is possible to take Inptu tax credit? what is the time limit to take the Input Tax credit

Kindly give me suitable notification

Replies (3)

please clear your question dear.

I think what you want to convey is that you provided a service to service recipient. SR pays you after 5 years of invoice date.

Well, here the service recipient which pays service tax to you (SP) after 5 years alongwith basic value cannot claim cenvat credit under cenvat credit rules, 2004. The receiver has to pay within 6 months of invoice raising to avail cenvat credit of service tax.

Regards,

Sorry, it is not 6 months but 3 months as per 2nd proviso to Rule 4(7) of CCR 2004 as amended till date.


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