10 September 2012
My query is- Suppose my service tax liability for the month August 2012 is rs.100, which is required to be paid on or before 5th september 2012. Amount payable under reverse charge mechanism is rs.30 which is again payable on or before 5th September. Suppose i pay these rs.30 on 5th September. Can i there after take credit of these payment on the same day(i.e. 5th September)against my output service tax payment of rs.100 as above.
10 September 2012
First pay in a separate challan the tax payable under reverse charge (by cash) and that challan is equivalent to cenvat credit document. Now adjust the this challan amount in your output tax, if the reverse charge service is an eligible input in relation to your output service tax or Excise Duty.
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