sivakumar (Asst Manager - F&A) (324 Points)
07 February 2014Hi,
Can we use Reverse charge mechanisam bills service tax amount as a service tax Input. Now a days we have booked as a cost.
Can we adjust Partialy Reverse charge service tax amount from available CENVAT or ST Input. Now a days we have paid by cash but we have more ST Input.
Pls clarify.
CA Ashok Agrawal
(Chartered Accountant)
(60 Points)
Replied 08 February 2014
Dear Sivkumar,
Please refer definition of Input service. According to it if your are service tax provider or manufacturer then only you take input credit for service tax.
Further yes you can take CENVAT credit on service tax paid on reverse charge basis but can not utilise the normal CENVAT credit against the tax liability of service tax on reverse charge.
sivakumar
(Asst Manager - F&A)
(324 Points)
Replied 09 February 2014
Thank you Mr. Ashok Agarwal. We are a service provider. As per your suggestion ,we can take input credit from reverse charge basis bills and the payable amount can will pay from available Input tax. but we cant use CENVAT. Is it?
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