True or false

Service Tax (Legacy) 441 views 2 replies

Is following true?

Service Tax Input Credit against the purchase bills can be availed even if payment is not made to the Service Provider. However, if payment is not made to the Service Provider within 3 months, the Service Tax Credit availed/utilised has to be reversed.

Thanks

Shivani

Replies (2)

Yes, According to Rule 4(7) of Cenvat Credit Rules, 2004, the Cenvat Credit in respect of input service can be availed immediately upon RECEIPT of the Invoice/Bill irrespective of payment thereof to the service provider. However, if the payment towards value of input service and service tax thereon is not made within three months of the DATE OF INVOICE/BILL, then the Cenvat Credit availed earlier has to be paid. This Credit is again available upon actual payment of Invoice and tax.

Yes Correct!


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details