Availment of cenvat credit on advance payment of input service

[vishal bhattad]

whether the assessee can avail cenvat credit on advance payment of input service without receving the input service ?

AI Summary

Can Assessee Claim Cenvat Credit on Advance Payment for Services Not Yet Received? Rule 4A Implications. A query was raised regarding whether an assessee can avail Cenvat credit on the advance payment of input services without receiving the service. One respondent stated that there is no restriction in the Cenvat Credit rules against taking credit on advance payment. Another argued that practically, an invoice must be issued for services rendered, and credit can only be taken upon receipt of the service. A third response noted that according to rule 4A of the Service Tax Rules, an invoice must be issued within 14 days of service provision or payment receipt, allowing credit based on such an invoice.