cenvat credit on service tax

[ashish yadav]

Dear Sir

Kindly reconfirm once again there are certain Invoice raised by the

labor contractor and security as they were provided service to our

excise unit at Tarapur the invoice dated 2/4/2015 and the payment

of service tax paid by us in the Month of Aug-2016 along with the

Interest. The same can be taken credit in our excise book.

This is because of one year period of date of invoice or date of payment ?

AI Summary

Cenvat credit timing: generally measured from the supplier's invoice date, with reverse charge exceptions on payment date.
Credit must generally be availed within one year from the supplier's invoice date; payment to the supplier does not determine that period. If credit is availed but the recipient fails to pay the supplier within three months of bill receipt, the credit must be reversed and can be re availed after payment. If service tax is paid by the recipient under reverse charge, the time limit runs from the date of tax payment (challan), not the invoice.