CENVAT credit on 100% Reverse Charge available on making Service Tax Payment irrespective of vendor payment (Effective from 1st september, 2014)

Hitherto, CENVAT credit in respect of 100% Reverse Charge was available only after payment of value of invoice to the vendor and payment of Service Tax to the Revenue Exchequer. Henceforth, such credit is available once payment of Service Tax is made to the Exchequer irrespective of pendency of service value to the vendor. In case of partial Reverse Charge the provisio remains same.

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