Regarding input of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2013 we as a company are paying service tax on transportation of goods and supply of manpower under reverse charge mechanism.so I want to know that can we claim credit of service tax paid on telephone charges and testing charges etc as iput against our above mentioned liability.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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24 December 2013 Against reverse charge mechanism you cannot take such credit.

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2013 hi..tushar
can you please upload any supporting or link to justify your answer

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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02 January 2014 1. CENVAT credit can be utilised to discharge service tax liability on OUTPUT service.

2. Services covered under reverse charge have been specifically EXCLUDED from the definition of output service.

Accordingly, you CANNOT utilize CENVAT credit to discharge service tax liability under reverse charge mechanism.

Such liability has to be discharged only by cash payment.