Cenvat credit on reverse charge, Service Tax

[yateen vyas]

Sir we have taken a service under works contract.Invoice is raised by SP on 24-09-2016 for 50 % payment we have made payment on 31 march 2017,we have not paid our 50 % payment on GR-7 till date due to some issue.

Now i want to ask that can we eligible for avail cenvat credit on SP bill where we have paid amount with Service tax and what about 50 % GR -7 payment credit on it can paid in later date and avail cenvat credit.

Rgds

Yateen vyas

Posts / Replies

[Himansu Sha]

Yes you can take the credit on sp bill as this is a document under rule 9 of CCR. After you make the payment for the rest amount you will take the credit because you cannot generate the challah if you do not pay.

[Himansu Sha]

To append to my earlier reply, you can past the amount later on for the rest amount, the bar of oner year will be counted from the date of the document.

[yateen vyas]

In reverse charge there is 180 days clause for payment either crdit has to reversed so it will apllicable to SP bill or on challan

[Himansu Sha]

This is when you do not pay and take the credit.