Service tax input under reverse charge mechanisim

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

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.

Ramesh

Ramesh (Expert)
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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