Clarity of Cenvat Credit under RCM
Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider. However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.
If For Example,
I booked the Invoice, and paid the service tax to authority but did not paid any amount to the vendor, will system allow me to avail the service tax credit of the amount paid or is it necessary to make the payment to the vendor.
Regards
Sachin