Catagory of Service -Reg.

[vinay wakde]

We are receiving various Input services against which we are taking CENVAT credit only after actual payment to the service providers. During the Excise Audit we have been asked to collect the documentary evidence of some of the service providers, whether they have deposited the Service Tax payment to the Government treasury within three months of time, otherwise the credit taken by us is denied.

Is there any provision in  Cenvat Credit Rule? As per my knowledge, credit should not be denied if the service providers are collected the service tax & not deposited to the Government treasury. Is there any change in the credit Rule? Kindly clarify.

Regards,

VINAY

 

AI Summary

Cenvat credit availability on invoice receipt follows where payment to the service provider is made within the prescribed period.
Cenvat credit for input services is available on receipt of invoice provided payment to the service provider is made within the prescribed period; amendments permit credit on supplementary invoices except in non bona fide cases and address reversals when service value is renegotiated or refunded. No rule requires recipients to produce documentary evidence that the service provider deposited service tax to the treasury, as the recipient's responsibility is discharged by actual payment to the provider.