Input tax credit on service tax bills

[jagadesh kumar bhojanapalli Kumar]

The 100% EOU company had received invoice date is 23.08.2014 for taking credit is 6months time bar so we can take credit in this month or not any reversal is to be made or not since we have not made payment to service provider

AI Summary

CENVAT Credit: Must Be Taken Within Six Months, Payment Within Three Months to Avoid Reversal. Re-credit Possible After Payment. A company operating as a 100% Export Oriented Unit (EOU) received an invoice dated August 23, 2014, and inquired about taking CENVAT credit within a six-month period. The primary concern was whether credit could be taken without reversing it if payment to the service provider was delayed beyond three months. Experts clarified that CENVAT credit must be taken within six months, and payment should be made within three months to avoid reversal. Re-credit is possible after payment, even if beyond the six-month period, though legal guidance on this is limited, suggesting consultation with relevant authorities.