Adjustment of service tax under rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 June 2014 service tax under RCM can be set off from huge service tax input already service tax input.
Thanks in advance

Ganeshbabu K

Ganeshbabu K (Expert)
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07 June 2014 1)Cenvat credit cannot be used to pay tax by service receiver. Service tax as to be paid by cash only i.e. GAR-7 challan.

2)Once paid, Cenvat credit can be taken if otherwise it is his eligible ‘input service’.

3)Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax.

4)Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider.
However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.