Service receiver paid service tax to provider but he has not paid to goverment

[Asked by Guest]

Dear Sir,

We are paid an invoice value with service tax to service provider. But service provider will not paid service tax to service tax department.

In this case we can take a service tax credit or not??

Please explain.

Thanks & Regards,

Sanjay Vasava

AI Summary

Input tax credit entitlement: recipients may claim Cenvat credit based on invoice/payment despite supplier non remittance, with caveats.
Whether a recipient may avail Cenvat credit when the service provider collects service tax but does not remit it: respondents variously advise that credit is available based on invoice and payment (citing sub rule (7) of rule 4, Cenvat Credit Rules, 2004), others contend credit depends on the supplier's actual payment to government, and one notes supplier non remittance is an offence while another warns the position will change under GST.