TaxTMI 
TaxTMI 
Dear Experts,
We are in Taxable Terrotory and receiving services from non taxable territory like J&K and liable to pay service tax under reverse charge machenism. Can we take input credit after payment of service tax.
Thanks
S.Tax Input Credit under reverse charges Machenism
02 Oct 2012 
1 Reply 
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Reverse charge Cenvat credit permitted only after payment; credit may be availed on production of payment challan.
The First proviso to Rule 4(7) of the Cenvat Credit Rules, 2004 conditions CENVAT credit for service tax paid under the reverse charge mechanism on actual payment by the service receiver; the recipient may claim credit only after payment and can do so on the basis of the tax payment challan. (AI Summary)
The First proviso to Rule 4(7) of the Cenvat Credit Rules, 2004 conditions CENVAT credit for service tax paid under the reverse charge mechanism on actual payment by the service receiver; the recipient may claim credit only after payment and can do so on the basis of the tax payment challan. (AI Summary)