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.

[Surender Gupta]

It appears that the issue is related to import of services. In case of import of service, GAR-7 challan is the valid document on which you pay service tax for availing cenvat credit.

AI Summary

CENVAT credit on imported services requires a GAR challan as valid proof of service tax payment to claim credit. Import of services received in India but paid or settled outside India should be treated as import of services; a GAR challan is the valid document evidencing payment of service tax for availing CENVAT credit where input service invoices and settlement are recorded only at an overseas central office.