what is the impact if we credit taken Before Invocie

[Swapneswar muduli]

Dear Sir,

By mistake in Service tax Credit taken date is before the invoice service provider invoice date.

Is there any litigation regarding this ?

Regards

swapneswar Muduli

AI Summary

Mistaken Service Tax Credit Before Invoice Date: Reverse Promptly to Avoid Penalties and Interest. Self-Correction May Mitigate Issues. A forum participant raised a query about mistakenly taking service tax credit before the invoice date, seeking advice on potential legal implications. Respondents generally agreed that if the credit is reversed within the same month, no interest is payable. However, if detected by auditors or if the error is not corrected promptly, it could lead to penalties or a show cause notice. Some responses suggested that if the mistake is self-detected and corrected, authorities might be lenient. The issue was characterized as a procedural error, possibly due to a clerical mistake.