22 February 2009
IS THE SERVICETAX INSPECTOR CORRECT IN DENYING SERVICETAX PAID ON IMPORT OF SERVICE(COMMISSION AGENT FOR EXPORT SALES) AGAINST EXCISE DUTY PAYABLE ON LOCAL SALES?
You cannot adjust cenvat credit against payment of service tax on import of services. Under these rules you have to pay and then take the credit, there is no provision for adjusting cenvat credit under reverse charge.
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