01 July 2015
my company receiving services under reverse charge and not providing any taxable services then what shall be made of service tax paid under reverse charge by while making entry ,please reply this question.
02 July 2015
Hi! The service tax paid by service recipient under Reverse Charge Mechanism can be adjusted only against the output service, if eligible as input service under CENVAT Credit Rules 2004. In case where no output service has been provided by the company, the service tax paid under reverse charge cannot be refunded. So, the entire service tax paid shall have to be treated as cost of receiving the input service. Rgds, Ramesh
CAclubindia
