A pvt limited company receives service of manpower supply from a partnership firm. In this case reverse charge mechanism will apply i.e 100% service tax liability will be of Service receiver. My question is what will be the provisions of cenvat credit in the case of reverse charge in the hands of company.
02 May 2017
Dear
the company can take the credit of the service tax paid via GAAR 7 challan
the payment of tax under reverse charge is to be made in cash. i.e cenvat credit can not be utilised for the same.
but once the tax is paid same can be claimed as credit jn next month.
CAclubindia
