CENVAT CREDIT

[YOGENDRA CHAUHAN]

Dear All,

I as per new ammendment, service tax is payable on accurial basis.

Please confirm me can I enjoy the cenvat credit on accurial basis also.

( As I have not paid any amount to my service provider, but have booked the bill & he is liable to pay service tax as per the new ammendment.)

Will My company will be responsable if we take cenvate credit &  our service provider has not paid the tax timely.

Plese help me........

AI Summary

Accrual-based CENVAT credit: avail on invoice receipt but reverse if payment not made within three months.
CENVAT credit on input services may be availed on an accrual basis on receipt of the service provider's invoice, but the credit must be reversed if the invoice and tax are not paid to the service provider within three months; departmental authorities may require reversal if the service provider fails to remit tax, and reversed credit can be reclaimed after payment is made to the provider.