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Rule 4(7) of cenvat credit

EXICSE (Legacy) 1410 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.


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