Service tax credit for advance payments made

HI

I have made an advance payment to input service provider for Rs. 150000 can i claim service tax credit on such payment using grossing up method

Also in respect of advance payment of mobile bill can i claim service tax credit on Rs. 3400 i paid in advance for full year on 22/02/2010 using grossing up method


Grossing up method i mean presuming i paid amount inclusive of service tax @ 10.3% and then calculating amount of service tax.

please reply immediately with relevant case laws on the matter if any.

Dear Rohit,

In the absence of a valid document no cenvat credit can be availed. In case of advacne payment ask the servic eprovider to raise raise an invoice for advacne with ST and then only you can avail the credit. There is deemed credit provision presently for input services.

Warm Regards

Madhukar

Dear Rohit,

In the absence of a valid document no cenvat credit can be availed. In case of advacne payment ask the servic eprovider to raise raise an invoice for advacne with ST and then only you can avail the credit. There is deemed credit provision presently for input services.

Warm Regards

Madhukar


Yes, 

I agree with u sir