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 Rules 2004: No Strict Time Limit for Availing Credit on Inputs or Capital Goods Discussed A discussion on service tax credit timing reveals that the CENVAT Credit Rules, 2004 do not specify a strict time limit for availing credit on inputs or capital goods. Participants agree that while inputs should ideally have credit taken immediately, capital goods allow for up to 50% credit in the first year, with the remainder in subsequent years. It is noted that service tax bills dated before 30.06.2011 must be paid for credit availment, whereas bills after 01.07.2011 can be credited before payment, provided payment is made within 90 days, or the credit must be reversed.