Service tax

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Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2013 Reverse charges of Service will adjusted with CENVAT credit OR it will full expenses .

please help

CA CS SUMEET BANSAL

CA CS SUMEET BANSAL (Expert)
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23 May 2013 Service tax under reverse charge can not be adjusted with CENVAT Credit.

It has to be paid through GAR7
and we can take cenvat crdit of the same on the basis of GAR7

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 May 2013 Where Service tax is payable under Reverse Charge Mechanism, it is to be paid by Cash only. Thus benefit of Cenvat credit cannot be availed of in such a case.

But any Service Recipient so liable to pay service tax in the above scheme can claim Cenvat credit of such tax paid by him and utilize the credit against

* Central Excise duty payable on manufacture of final goods OR

* Service Tax payable by him on any output service

on the basis of copy of GAR 7 challan.

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Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2013 Thanks for your reply.

but there is one more doubt,

If we have some legal fee received from a individual advocate of Rs 1000/- and as per reverse charge mechanism we have to libale service tax for that of rs 123.60, can we adjust the the amount of Rs 123.60 with other service tax libility.

Regards
Anirudh