Timing of CENVAT credit for input services: credit on invoice receipt; reverse charge credit after payment of value and tax. Rule 4(7) permits CENVAT credit for input services on or after receipt of the invoice, bill or challan; for reverse charge services credit is allowed only after payment of the value and service tax, and failure to pay within three months requires repayment equal to credit availed. Refunds or credit notes trigger corresponding repayment. Pre-operative invoices are subject to the payment-linked credit rule. Explanations fix payment deadlines and recovery, with quarterly treatment for certain exempt manufacturers and small service providers. Rule 6(c) revises traded goods valuation to the greater of the margin over cost of goods sold or ten percent of cost. Rule 9 adds supplementary invoices as credit documents except where additional tax arises from fraud or intent to evade tax.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Timing of CENVAT credit for input services: credit on invoice receipt; reverse charge credit after payment of value and tax.
Rule 4(7) permits CENVAT credit for input services on or after receipt of the invoice, bill or challan; for reverse charge services credit is allowed only after payment of the value and service tax, and failure to pay within three months requires repayment equal to credit availed. Refunds or credit notes trigger corresponding repayment. Pre-operative invoices are subject to the payment-linked credit rule. Explanations fix payment deadlines and recovery, with quarterly treatment for certain exempt manufacturers and small service providers. Rule 6(c) revises traded goods valuation to the greater of the margin over cost of goods sold or ten percent of cost. Rule 9 adds supplementary invoices as credit documents except where additional tax arises from fraud or intent to evade tax.
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