Cenvat credit on input services

[DEVENDAR T. D.]

Can CENVAT credit be availed in respect of input services that are received in India but paid for/ settled outside India? What will constitute acceptable documentation in such cases when both input service invoices and the settlement are not accounted for in the books/ accounting records maintained locally at the establishment in India but are accounted for at the central office overseas. Many thanks.

AI Summary

CENVAT Credit Eligibility for Input Services: GAR-7 Challan Valid for Service Tax Payment on Imported Services A query was raised about the eligibility to avail CENVAT credit for input services received in India but paid for and settled outside the country. The concern was about the acceptable documentation when invoices and settlements are not recorded in local accounting books but are managed by a central office overseas. The response clarified that in cases involving the import of services, the GAR-7 challan serves as the valid document for paying service tax, which is necessary for availing CENVAT credit.