Rule 4(7) of cenvat credit

1382 views 2 replies
In case of reverse charge mechanism, ccr can be taken on payment of service tax only. But is such credit need to be paid back if payment of value of service not made within 3 months by applying second proviso of rule 4(7)?
Replies (2)

The second proviso to 4(7) sets out that as far as ST paid on RC is concerned, even if payment not made to service provider, credit need not be reversed.

However for credit on service providers invoice, while credit can be availed immediately on receipt of the invoice, the credit needs tobe reversed if the payment to SP is not made. 

Thanks for your clarification.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details