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.

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.