TaxTMI 
TaxTMI 
What is the time(Period Billing date to) Service tax Input Credit Taken on Input/Capital Goods Bills one Year or 6 months?
Time for Service tax credit
12 Dec 2011 
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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. (AI Summary)
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. (AI Summary)