Monthly Filing of GAR-7

[Shrikant Bhat]

In case of preparing ST monthly payments can we take previous month service tax input credit? for example ST Regi on 11/10/2010, no service tax collection made on that month and in next month we collected service tax on our sales bill, can we set of input credit set of with previous month input with current month out put service tax while preparing GAR-7........pls confir as early as possible .. thanks

[rishi mohan]

The input credit of the service tax can be availed with in the same period of payment.

In your case you can avail the input credit of service tax easily as the credit service tax is related for the same period (same half year) for which the service tax return is to be filed.. 

[Shrikant Bhat]

thanks rishi

AI Summary

Input credit timing: input credit may be availed in the payment period and set off against current output tax.
Where registration occurs in one month but service tax is collected in the next, input credit for service tax can be availed in the period when payment is made and set off against the current month's output, provided the credit relates to the same half-year for which the service tax return is filed.