Service Tax Input Credit

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vinod kumar

Student

21 Points Posted on 27 November 2008

Hi friends, I have a doubt regarding service tax input credit. While creating provision for outstanding expenses(during march) if the service provider creates provision for the expense without considering service tax input credit, can he take credit of service tax paid, subsequently in the month of April when he pays service tax The crux of the facts above is that while creating provision we would have charged the service tax on the expense incurred as an expense in profit and loss account. Is it correct if we take credit of that service tax which we have already charged to profit and loss account Pl reply with reference to Section of the Act or case law Thank you

Replies (3)

Rinky jhanwar

79 Points Posted on 30 November 2008

Originally posted by :vinod kumar

Hi friends,

I have a doubt regarding service tax input credit.

While creating provision for outstanding expenses(during march) if the service provider creates provision for the expense without considering service tax input credit, can he take credit of service tax paid, subsequently in the month of April when he pays service tax

The crux of the facts above is that while creating provision we would have charged the service tax on the expense incurred as an expense in profit and loss account. Is it correct if we take credit of that service tax which we have already charged to profit and loss account

Pl reply with reference to Section of the Act or case law

Thank you

Rule 4(1)CENVAT credit rules 2004

The CENVAT credit in respect of input services shall be allowed ,only when payment is made on input services and service tax is paid or payble indicated in invoice.

so service tax CREDIT is not availabe when expense is charge on P&L A/C