Clarification regarding availment of credit on input services - reg

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..... The Director General of Service Tax The Director General of Audit The Director General of Central Excise Intelligence, The Commissioners of Service Tax (ALL) Madam/Sir, Subject: Clarification regarding availment of credit on input services - reg. **************** Representations have been received by Board regarding denial of CENVAT credit on input services in certain cases. Some of the ca .....

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..... of the value of input service has been made in money terms. 3. As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004, "Credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9". A doubt raised is .....

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..... uirement of the said sub-rule (7). 4. Thus the following issues relating to availment of CENVAT credit need clarification,- Whether CENVAT credit can be claimed (a) when payments are made through debit/credit notes and debit/credit entries in books of account or by any other mode as mentioned in section 67 Explanation (c) for transactions between associate enterprises; or (b) where a service r .....

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..... 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 should be allowed under said rule 4(7). Thus, in the case of "Associate Enterprises", credit of service tax can be availed of when the payment has been made to the service provider in terms of section 67(4)(c) of Finance Act, 1994 and the servi .....

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..... ax, the credit would also be altered accordingly. 6. The contents of this circular may be suitably brought to the notice of the field formations. In case any difficulty is faced in implementing these instructions, the same may be brought to the notice of the undersigned. Yours faithfully (Himanshu Gupta) Commissioner (Service Tax)
Circular, Trade Notice, Public Notice, Instructionsor Offic .....

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