dear sir,
we are manufacturer and taking man power service for labour work from contractor (proprietor).
contractor charges us labour charge and 25% service tax under partial reverse charge in his bill on monthly basis against providing man power service .
now our question is that when can we take credit of the same 25% service tax which was charged by contractor (1) immediately on received bill from contractor (2) on or after the payment made of the said bill ?
regards,
manan pandya
mo: 9510018659
Manufacturers can claim service tax credit on manpower services after invoice payment, within six months per Cenvat Credit Rules, 2004. A manufacturer inquired about when they can claim service tax credit on manpower services provided by a contractor, who charges a 25% service tax under partial reverse charge. Responses clarified that, according to recent amendments in the Cenvat Credit Rules, 2004, credit can be claimed on or after payment of the invoice, provided payment is made within three months. For services under full reverse charge, credit is allowed after payment of the service tax. An amendment effective from September 1, 2014, also restricts claiming Cenvat credit to within six months of the invoice date. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
