Cenvat Credit

[Raj Kumar]

Dear All,

If service bill is 01.07.2011 and we take service tax credit but what implimentation if payment not done 31.12.2011.

is service tax credit reverse ...

if yes, Please send me notification about it. matter is urgent please help......

 

AI Summary

Cenvat Credit on Service Tax: Reverse if Unpaid Within 3 Months; Reclaim Upon Payment A discussion on a forum revolved around the issue of Cenvat credit related to service tax, initiated by an individual seeking urgent advice on whether service tax credit must be reversed if payment is not made by December 31, 2011. One respondent clarified that Cenvat credit is allowed upon receipt of an invoice, but must be reversed if payment is not made within three months, with credit available again upon payment. Another advised following the earlier practice of taking credit post-payment to avoid audit issues. A third participant echoed this, recommending credit availing only after bill payment to simplify audits.