Under reverse charge

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2014 i am working in a company and set off input at the month end
if i paid service tax on 7th july under RCM then in which month we can set off input if exp. are related to june month.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 July 2014 Let me tell you under reverse charge mechanism credit can be taken on payments made on basis of GAR-7 challan
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Hence you can take credit only on the date of payment of service tax under GAR 7

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 Ganeshbabu if service tax of july under reverse charge we paid on 7th august then we can avail cenvat credit on 31st august ,sir i
am right or wrong please reply.

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Ganeshbabu K

Ganeshbabu K (Expert)
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16 July 2014 Yes you can avail on that date
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Service receiver is eligible to take input on payment service tax on basis of GAR-7 Basis
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Budget 2014 update relevant to this :

https://www.caclubindia.com/experts/treatment-1783224.asp#.U8acl_mSx1Y

For More Budget updates follow me on

https://www.facebook.com/pages/Ganeshbabu/439383716201583?ref=hl

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 ganeshbabu plese reply another question
if LLP provide service to company then all services that come under RC . Company no have to pay service tax under RC.

Ganeshbabu K

Ganeshbabu K (Expert)
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16 July 2014 Yes,

Company not supposed to pay service tax under reverse charge mechanism

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If Service provider is LLP or COMPANY they have to collect entire service tax from service receiver and pay to department
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Service receiver not under obligation to pay service tax RCM
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However RCM Applicable if service provider is normal partnership firm and not an LLP

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 Thanks ganeshkbabu for valuable answer and precious time given for me.