Service tax clarification - reverse chg
Querist : Anonymous
I have few question over reverse chargers (notification Per Notification No. 30/2012 and Notification 36/2012)
· Whether we can avail credit for all the reverse charges (even if they don’t have service tax registration no.)
· Whether Service tax will be charged on the balance value after abatement (Notification No. 26/ 2012)
· Whether service tax to be paid on the time of payment to service provider or accounting of expenses
· Whether we need to pay service tax even if the individual or partnership firm not having services more then 10 lacs pa.
Accordingly the service recipient is eligible to claim credit of service tax paid under reverse charge.
2. Service tax will be calculated on the balance after claiming abatement.
3. Yes service tax will be payable even if the turnover of the service provider is less than Rs. 10 lakhs. This is because the exemption available to the service provider is NOT passed on to the service recipient.
shall have to pay service tax which he is obliged to pay under the partial reverse charge mechanism.
Normally, the credit of the entire tax paid on the service received by the service receiver would be available to the service recipient subject to the provisions of the CENVAT Credit Rules 2004. The credit of tax paid by the service provider would be available on the basis of the invoice subject to the conditions specified in the CENVAT Credit Rules 2004. The credit of tax paid by the service recipient under partial reverse charge would be available on the basis on the tax payment challan, again subject to conditions specified in the said Rules.
REGARDS,
GG BADWE
Querist : Anonymous
In which account code we need to pay all the revserve chg (ST,Ec &HSC)
Regards
Sathish
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