Reverse charge

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2013 The service provider is covered under reverse charge mechanism and thus the service recipient is liable to pay service tax.

What is the treatment of the service tax paid by the service provider in the course of business?? As he wont be able to take credit for the same as he is not liable to pay service tax to the government.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

01 January 2013 If the service tax is to be paid by recipient then there is no treatment required in the books of service provider in relation to service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2013 The query is not regarding the treatment in books of accounts..
what about the service tax paid by the provider of service on the input service??

Upgrade to CAclubindia Pro. Subscribe Now!