Payment terms in PO & CENVAT eligibility - new order

Dear Mr. Raman - very informative and well thought through Article. To add - broadly, the time limit of 3 months would matter if the assessee proposes to avail credit based on date of invoice, and outer limit of 6 month would apply if the assessee proposes to avail credit based on date of payment. In case of import of services (full reverse charge), assessee can take credit based on the payment challan, hence, this may practically, not be affected by the new 6 month time limit for availing credit. However, as you have rightly provided, payment has to be made withing 6 months or else there would be interest liability (POT Rules). Bharath, Economic Laws Practice

rohit jain 06/08/2014