service tax credit-reg

[Ramakrishnan Seshadri]

Dear Sir,

We are receiving bills relating to security ,housekeeping, internet bills and service tax is claimed in the bills.

Now our question is service tax credit to be taken only after payment to the respective parties or shall we take only the bills are taken into account.

Please clarify.

Thanks and Regards,

S.Ramakrishnan.

[Mahir S]

Sir,

you may avail the input service credit on receipt of the bills but if payment for the same is not made within three months time from the date of the invoice bill, then the said input service credit is required to be reversed.

In short, it is advisable to take credit after making paying of the bills.

[MUKUND THAKKAR]

Sir,

please take credit and ensure payment should be done with in 90 days. you may enjoy the credit up to 90 days.

[YAGAY andSUN]

Dear Ramakrishnan,

CENVAT credit on security, housekeeping should be availed according to the definition of input services/provisions of CENVAT credit Rules, 2004 and payments must be made within 90 days.

Regards,

Sameer Malhotra - Consultants

YAGAY and SUN

Management, Business and Indirect Tax Consultants

AI Summary

Service tax credit may be claimed on invoice receipt but must be reversed if payment is not made within the prescribed period. Input service credit for services like security, housekeeping and internet may be availed on receipt of invoices, but the credit must be reversed if payment to the service provider is not made within the prescribed period from the invoice date; taxpayers should ensure payments within that statutory timeframe and satisfy the definitional tests for input services under the CENVAT Credit Rules to maintain compliance.