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?

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.