Service Tax Input Credit

Queries 788 views 1 replies

Dear Sir/Madam,

I am working in logistics companies and our company is providing warehousing facilities also.One of our vendor (Manpower Service Provider) has recentrly submitted a claim request against his service tax payment notification for during the year 2005-06 from commissionarate. Vendor has been registered S.Tax on Aug 2006. But vendor has billed to us without charging service tax  in thier ealier bills . Vendor is submitted their unbilled service tax amount now.

My question is shall I take input credit against these period. Our company is ready to pay if we avail an input credit against these old bills.Kindly revert your suggestions and mention with Service Tax Act it clearly given solution.

with regards,

Jeeva

Replies (1)

Yes you are eligible for availing the credit on valid invoice. Normally the same is to be availed in immediately.  However the Tribunals have held that there is no time limit. In my view the credit for past yeras is available as long as the service for which it was paid was eligible input service and the same was used for providing taxable services.

If the same was sued for both taxable and non taxable/ exempt services then the restuirction under Rule 6 under cenvat credit rules would apply.


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