06 June 2013
In case of services covered under reverse charge mechanism where service tax is payable by the recipient, Cenvat credit cannot be used to pay tax by service receiver. Service tax has to be paid by cash only. Once paid, Cenvat credit can be taken if it is his eligible ‘input service'. If suppose for the month of may service tax on reverse charge is paid by 5th of June and service tax for output services is still pending and will be paid with interest. Can we claim cenvat of input services (reverse Charge)on making such payment for the month of may.?
06 June 2013
Rite,what ever u paid under reverse charge method the same can be claimed and at the same time you claim for paying any output services.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
07 June 2013
you mean to say when we are goin to pay service tax liability for the month of may in july with interest then while making such payment we can take input credit of service tax paid on reverse charge in the month of may...
CAclubindia
