11 October 2012
I will be highly obliged if you can kindly clarify my following confusion.
" WE ARE INTO HOSPITALITY INDUSTRY, SOME OF THE VENDORS/CONTRACTORS, ENGAZED BY US ARE NOT REGISTER UNDER SERVICE TAX SO THEIR BILL DO NOT CHARGE US WITH SERVICE TAX. BUT AS SERVICE RECIVER WE ARE LIABLE TO DEPOSIT SERVICE TAX UNDER REVERSE MECHANISM UNDER WCT CONTRACT & MAN POWER CONTRACT.
OUR CONFUSION IS WHEATHER:
1. WE CAN TAKE CREDIT OF SUCH SERVICE TAX DEPOSITED BY US AS CENVAT CREDIT?
OR
2. WE CAN DEDUCT OUR SERVICE TAX PORTION FROM THE VENDOR BILL & DEPOSIT THE SAME TO THE GOVERNMENT ACCOUNT JUST LIKE THE PROVISIONS OF TDS.
CAclubindia
