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Clarification regarding availment of credit on input services - reg - Service Tax - 122/03/2010Extract ..... es - reg. **************** Representations have been received by Board regarding denial of CENVAT credit on input services in certain cases. Some of the cases where doubts have been raised by field formations are given below: 2. As per Rule 4(7) of the CENVAT Credit Rules, 2004, the CENVAT credit on input services is available only on or after the day on which payment of the value of input service and service tax is made. The section 67(4) of the Finance Act, 1994, provides that gross amount cha ..... x x x x x Extracts x x x x x Clarification regarding availment of credit on input services - reg - Service Tax x x x x x Extracts x x x x x ..... service provider, and also the service tax payable thereon, has been paid. It has been represented that in many cases, after the invoice is issued by the service provider, the service receiver does not make the full payment of the invoiced amount on account of discount agreed upon after issuance of invoice; or deducts certain amount due to unsatisfactory service; or withholds some amount as security to be held during contract period. Due to these reasons the value paid may not tally with the am ..... x x x x x Extracts x x x x x Clarification regarding availment of credit on input services - reg - Service Tax x x x x x Extracts x x x x x ..... isions of Rule 4(7) are concerned, it only provides that the CENVAT credit shall be allowed, on or after the date on which payment is made of the value of the input service and of service tax. The form of payment is not indicated in the same and the rule does not place restriction on payment through debit in the books of accounts. Therefore, if the service charges as well as the service tax have been paid in any prescribed manner which is entitled to be called 'gross amount charged' then credit ..... x x x x x Extracts x x x x x Clarification regarding availment of credit on input services - reg - Service Tax x x x x x Extracts x x x x x
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