TaxTMI 
TaxTMI 
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
what is the impact if we credit taken Before Invocie
05 Mar 2016 
9 Replies 
1332 Views Asked by
Guest 
Wrong credit taken before invoice date triggers repayment with interest unless reversed within same month; penalty risk if detected.
Crediting service tax/CENVAT before the supplier's invoice date constitutes a wrong credit that must be repaid and attracts interest from the date taken; reversal within the same month generally avoids interest. Such entries are treated as procedural lapses arising from misdating or premature register entry. If the department detects the error, a show cause notice and penalties may follow, but authorities commonly take a lenient view where the assessee self detects and rectifies the mistake before departmental discovery. (AI Summary)
Crediting service tax/CENVAT before the supplier's invoice date constitutes a wrong credit that must be repaid and attracts interest from the date taken; reversal within the same month generally avoids interest. Such entries are treated as procedural lapses arising from misdating or premature register entry. If the department detects the error, a show cause notice and penalties may follow, but authorities commonly take a lenient view where the assessee self detects and rectifies the mistake before departmental discovery. (AI Summary)