credit for ST paid

[Asked by Guest]

we are into the business of providing payment gateways. Agreements with banks and merchants form the basis for providing and receiving service. rates at which commision / chrges are payable / receivable are documented in these agreements. Being so, when we pay for the service together with ST as per agreed terms, is it required for the service provider to invoice us month on month for the purpose of taking credit for ST paid. is not the agreement a valid document for the purpose?

[JAMES PG]

As per Service Tax Rules, every person providing taxable service shall issue an Invoice which shall be serially numbered and shall contain the name, address and Regn No of the registrant, name and adress of the person receieving the service, description and value of service and the service tax payable thereon.

Cenvat credit of Service Tax can be availed only on the strength of an Invoice or challan issued as per the Rules and cannot be availed on the basis of agreement or any such other documents

[NEERAJ KUMAR, RANCHI]

I agree with the views expressed by Mr James above.

[YAGAY and SUN]

I'm also in agreement with both of you.

AI Summary

Cenvat credit requires a valid invoice or challan; contractual agreements alone cannot support credit entitlement.
The statutory scheme requires that service providers issue serially numbered invoices with prescribed particulars, and Cenvat credit may be availed only on the basis of such compliant invoices or a valid challan; contractual agreements alone cannot support the taking of credit for service tax paid.