clarification regarding service tax credit on manpower service

[Asked by Guest]

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

AI Summary

Cenvat credit rules for manpower services: credit under partial reverse charge follows payment; invoice-only credit limited by payment timeframe.
Clarifies CENVAT credit treatment for manpower services: under partial reverse charge credit is allowable only after payment of the service value and service tax shown in the contractor's invoice per Notification No.21/2014; services not under reverse charge may be credited on invoice receipt if paid within a short prescribed period; full reverse charge services permit credit only after payment. An amendment also imposes an outer time limitation for taking credit measured from the date of the document, and requires reversal if payment is not made within the short-term period with a right to re availment upon payment.