Time for Service tax credit

[Laxmaiah Vanamamula]

What is the time(Period Billing date to) Service tax Input Credit Taken on Input/Capital Goods Bills one Year or 6 months?

[YAGAY andSUN]

Though No time has been mentioned in the CENVAT credit Rules, 2004 as amended time to time. but it says CENVAT credit on inputs should be immediately taken.  In case of Capital goods, upto 50% credit only can be taken at any point of time in a financial year and in any succeeding year or years.

[NEERAJ KUMAR, RANCHI]

There has been no time limit prescribed for taking credit except that in case of capital goods only fifty percent is allowed in the first year. Cenvat credit can be taken immediately on receipt of the goods but it never means that if it is not taken immediately there would be any problem,  it can be taken at any point of time.

[NEERAJ KUMAR, RANCHI]

There has been no time limit prescribed for taking credit except that in case of capital goods only fifty percent is allowed in the first year. Cenvat credit can be taken immediately on receipt of the goods but it never means that if it is not taken immediately there would be any problem,  it can be taken at any point of time.

[krishnamachari venugopal]

There is no time limit for availing service tax credit. Service Tax bills dated upto 30.06.2011 must have been paid for service tax credit availment. Bills dated after 01.07.2011 can be availed even before payment made for the same, provided payment for the bill must be paid within 90 days of  the Bill Date.Otherwise credit so availed has to be reversed.

[NK SHETE]

I do agree that the  Cenvat Credit Rule, 2004 specified no specific time span within which credit has to be availed. But the Rules mentions that credit has to be  availed IMMEDIATELY. 

I do agree with opinions of other learned persons regarding availment of CG and ST Credit.

AI Summary

Cenvat credit timing: immediate availment permitted; capital goods receive phased credit and payment-linked reversal rules apply. No express statutory time-limit exists for taking Cenvat credit; the rule requires immediate availment on inputs, but credit may be claimed later if conditions are met. Capital goods attract phased credit with an initial-year restriction and remaining credit in later years. Transitional practice around a specified policy-change date permits post-date bill credits before payment only if payment is made within a short prescribed period; otherwise the credit must be reversed. Compliance with payment-linked conditions and phased capital goods treatment are the operative constraints.