Reversal of Service Tax Input Credit

[Ranbir Singh]

Respected Sir,

 We are consulting engineers. We  are  taking service tax input credit on billing /accrual basis. My query is regarding Reversal of Service tax input credit if we do not pay within 90 day as we are adopting method of reversal of Cenvat credit in books  instead of pay through separate challan.

 For example

 Bill date is 10 April 2012,  and we have taken input credit in the month of April-2012, but we have not paid within 90 days from bill date means till 09^th July 2012. Please advise when should we pass the reversal entry of input credit.? Either on  30^th april 2012 or 09^th July 2012.

AI Summary

Consulting Firm Queries Reversal of Service Tax Input Credit for Unpaid Bills After 90 Days Under CENVAT Rules A consulting engineering firm is inquiring about the reversal of service tax input credit when payment is not made within 90 days, opting to reverse CENVAT credit in their books rather than paying through a separate challan. They cite a scenario where a bill dated April 10, 2012, had input credit taken in April 2012, but payment was not made by July 9, 2012. The response advises that the reversal of CENVAT credit should occur on or after July 9, 2012.