Please, help understand if the service tax input can be availed on the Service tax reverse charge payments, and for which all categories of services can inputs be availed.
Now in continuation for housekeeping charges the service receiver has to pay 75% as service tax reverse charge and is a liability whereas where should the debit be given in this case, should it be directly debited to Housekeeping charges and expensed off or should it be debited to a different ledger and the inputs (if debited to Defferred service tax input) availed in the next month of paying the service tax reverse charge amount.
18 May 2013
you can debit to differed service tax input and utilize it to pay service tax which you have to pay as a service provider. In short you can't utilize it to pay service tax on reverse charge basis because you have to pay it in cash.
CAclubindia
