CREDIT OF INPUT SERVICE

[ANIL KUMAR]

Respected sir

OUR UNIT ENTERED INTO EXCISE LIABILITY FROM 01.10.2014.WE HAVE RECEIVED SECURITY and MAN POWER BILL IN MIDDLE OF THE MONTH OF SEPTEMBER FOR WHICH AMOUNT PAID IN MONTH OF OCTOBER.
THERE ARE TOTAL TEN BILLS OUT OF WHICH TWO BILLS FOR SECURITY AND OTHER EIGHT BILLS FOR MANPOWER.THE DETAILS OF BILL IS AS FOLLOWS.

01. SECURITY BILL :- ONE BILL FOR THE MONTH OF APRIL and ONE FOR JUNE
02. MANPOWER BILL :- TWO BILLS FOR MONTH OF JUNE and SIX FOR AUGUST.

PLEASE SUGGEST WHETHER WE TAKE CREDIT AS SERVICE INPUTS FOR THIS BILL IN MONTH OF OCTOBER 2014 AS WE DEPOSITED AMOUNT THROUGH CHALLAN IN MONTH OF OCTOBER

REGARDS

[Samik Chaudhuri]

Mr. Anil Kumar

Certainly you can avail Cenvat credit of Service Tax agsinst both bill.

With thanks

Samik Chauhduri.

[Mahir S]

As per new rule CENVAT credit sixth amendment 2014 vide Notification No. 21/2014,C.E. (N.T.), CENVAT credit cannot be availed after 6 months period from the invoice date.

Hence, in your case, you are now not eligible to avail cenvat credit in respect of Security Bill invoice for the month of April 2014. However, you can surely avail cenvat credit on all remaining invoices.

AI Summary

Cenvat credit eligibility depends on the invoice date time bar; late-dated invoices may be barred from credit while timely ones remain admissible. Availability of credit for input services is subject to a statutory time bar from the invoice date introduced by the Sixth Amendment: invoices dated outside the prescribed claim period are ineligible for cenvat credit, while invoices within that period remain admissible as input service credit.