cenvat credit of past liability, Service Tax

[jagannath prasad]

an assessee pays service tax liability after two years.Since now GAR7 is also an eligible document for taking credit, can the assessee take credit of the tax paid within 6 months of GAR7 date.

thanking you

Posts / Replies

[Ganeshan Kalyani]

In my view one to one correlation between liability and credit is not required. Therefore the credit can be taken except for interest which you are liable to pay.

[Mahir S]

Yes sir, if the service tax payment has nexus with the manufacturing activity, then you can take input service credit on such amount, except interest and penalty amount

[YAGAY AND SUN]

If your service provider has not been issued SCN by the Service Tax Department, then, you can avail the CENVAT credit of input service having nexus either with finished goods or output services otherwise not. Please check with your service provider in this regard that whether any SCN had been issued on him or not?

[jagannath prasad]

YAGAY AND SUN

Dear Sir,

Please let me know what provision of cenvat credit rules prevent taking of cenvat credit of service tax paid on input servioce after issuance of SCN.