LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Service tax credit rules

dilip (EMPLOYED) (36 Points)

19 December 2014

HI,

I HAVE A DOUBT REGARDING THE NEW AMENDMENT MADE IN SERVICE TAX.

WE ARE ALL AWARE THAT WE CAN TAKE CREDIT OF SERVICE TAX WITHIN SIX MONTHS FROM THE DATE OF INVOICE & IF THE PAYMENT IS NOT MADE WITHIN THREE MONTHS FROM THE DATE OF INVOICE THE SERVICE TAX AVAILED SHOULD BE REVERSED.

MY DOUBT IS REGARDING A CASE FOR EG:

I RECEIVE AN INVOICE DATED 01.01.2015, I HAVE NOT AVAILED NOR PAID THE PARTY UPTO 31.03.2015.

IN APRIL / MAY / JUNE 2015 CAN I AVAIL THE SAID CREDIT EVEN IF I HAVE NOT PAID THE AMOUNT TO THE PARTY? WHAT IS THE OPTION AVAILABLE IN THIS CASE?

Reply
Follow
Share

3 Replies

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 19 December 2014

See, you may take credit on receipt of invoice on 01.01.2015...but here if you donot pay the invoice upto 31.03.15 then the said credit to be reversed...

But later on if you pay the invoice say in May then you can take the reversed credit again provided such payment made within six months of invoice date.

So,if the paymnet of invoice made after six months of invoice date then the crdit cannot be taken and shall get lapsed.

dilip (EMPLOYED) (36 Points)
Replied 19 December 2014

Hi Thank u for your reply.

My query is if due to certain reasons i could not take the credit within 3 months, can the credit be taken in the 4th month even though the payment is not made ?

&your reply regarding recredit there is a circular from the dept that this time limitation is only for the first credit.