Time limit for service tax input credit

Sir,

We came to know that service tax input credit to be taken within 6 months

from the date of invoice. And payment to be made within 3 months. If

paymen is not made within 3months service tax input credit should be

reversed.

We like to take service tax input credit only after making payment to the

party but within the time limit i.e. 6 months. In this case how to account

a bill received from a sevice provider (not in partial reverse basis). ?

Whether the whole amount to be debited to expenses A/c. or there any

other ways ?

Ex : If we receiver a bill on 01-01-2015 time limit  is 01-07-2015.

It contains basic 100 + ser. tax  12 = 112 for service of instrument.

Usually we will debit repairs & Maint. A/c. 100 & Ser.tax input credit 12/-

and credit party X with Rs.120/-  Then whole Rs.120/- to be debited to

repairs & maint. And ser.tax input credit can be taken after making the

payment to the party. Passing JV by debiting ser.tax input credit a/c

and creditng repairs & maint.This will avoid taking input credit and again

reversing the same. Is it OK if we follow the same.

Please reply

with regards

mala

 

 

 

 

 

Replies (1)

Yes you can do in that manner also

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