Reverse charge mechanism

This query is : Resolved

vicky (Querist)
Follow

19 December 2013 please answer it soon ,exemption limit of Rs. 1000000 apply in case of reverse charge mechanism of service tax ??????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

19 December 2013 the ans is no.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

19 December 2013 1)The small service provider exemption of ` 10 lakhs not available when tax is payable under reverse charge.

2)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.

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

4)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.

Upgrade to CAclubindia Pro. Subscribe Now!