Cenvat Credit

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....envat Credit<br> Query (Issue) Started By: - Raj Kumar Dated:- 8-7-2011 Last Reply Date:- 12-7-2011 Service Tax<br>Got 3 Replies<br>Service Tax<br>Dear All, If service bill is 01.07.2011 and we take service tax credit but what implimentation if payment not done 31.12.2011. is service tax credit reverse ... if yes, Please send me notification about it. matter is urgent please help...... Reply B....

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....y Reshma kochar: The Reply: Hi Raj, Here I have summarized some of the key clarifications issued vide the Circular (Circular No. 943/04/20 1 1-CX dated 29 April 2011 ), hope you may find it useful. Point of Cenvat credit Cenvat credit will be allowed on "receipt of invoice" as against on "payment of value of taxable service along with service tax". It is also provided that if payment of value....

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.... of input service and service tax thereon remains unpaid for 3 months from the Invoice date, the amount of credit initially availed needs to be paid. The amount so paid will be subsequently available as credit upon payment of value of input service and service tax thereon. Where service tax is payble under reverse charge, the Cenvat credit will be allowed only upon payment of value of input servi....

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....ce and service tax thereon. As a transition provision, for invoices issued prior to 1 April 2011, Cenvat credit will continue to be available upon payment of value of input service and service tax thereon. Please update me for next... Thanks, Reshma. Reply By BHARAT PUROHIT: The Reply: DEAR SIRS BEST WAY TO FOLLW IS EARLIER PRACTICE: TO TAKE S. TAX CREDIT AFTER MAKING PAYMENT. IT WILL BE....

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.... HASSEL FREE AND U WILL NOT FACE ANY PROBLEM WHILE AUDIT. THNX/ B.B.PUROHIT Reply By ramniranjan kandoi: The Reply: Dear, It is always better to avail credit after payment of the Bill because otherwise at the time of Audit,checking willbe required to be done ,whether payment is made in 90 days time. RMKandoi<br> Discussion Forum - Knowledge Sharing ....