Procedure for making payment under reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2013 what is the procedure to make payment under Reverse Charge mechanism?. is it the same way to make payment under gar-7?

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

20 September 2013 It is same as payment of service tax as service provider

Message likes : 1 times

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

21 September 2013 Yes, it is the same method. The following additional points are to be observed.

1) Use separate challan for individual reverse charge services

2) For reverse charge, input cannot be availed.

3)After Reverse charge payment, it can be adjusted against your output tax due. The same challan is the document to be treated as cenvat document.

Message likes : 2 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

21 September 2013 Very well explained Mr. Rengaraj

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

22 September 2013 Thanks Suresh Jain Ji.