100% or 75% of tax liability on service receiver

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com )   (3468 Points)

12 July 2012  

Friends

The service provider providing manpower supply service to us (a pvt company) has billed INR 10,000. He has not charged any service tax. 12.36% thereof comes to 1236.

Now, we as receiver of service, under recently introduced reverse charge mechanism, need to pay output tax @ 100% of 1236 or 75% of 1236.

Can this be paid by way of utilisation of cenvat credit.

Please guide.

Regards,