Cenvat Credit

[Ranbir Singh]

Sir,

we are service providers, Can we take Service tax input credit on the basis of Performa invoices raised by our sub-consultants. is there any rules, notifications regarding this in service tax.

[Vijay Chitte]

If all the contents of the documents is as per sub-rule (1) of Rule 4A (service tax), than there is no issue, you can take credit.

[YAGAY and SUN]

No, Proforma Invoices are not the valid document to avail the CENVAT credit on Input Services.

AI Summary

CENVAT credit: proforma invoices generally not valid for input service credit; documentary compliance may permit credit.
Issue: availability of CENVAT credit on the basis of proforma invoices from sub consultants for input services. One view rejects proforma invoices as valid proof for CENVAT credit; another view permits credit if the document otherwise satisfies the documentary requirements under the service tax rules governing input services.