whether credit available in case of payment of service tax under reverse charge(chalan paid by service receipt)
Anil sharma (Student CA Final ) (154 Points)
03 February 2016whether credit available in case of payment of service tax under reverse charge(chalan paid by service receipt)
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 03 February 2016
Yes, it can be availed after payment of ST under RCM. That is if it is paid in Feb, credit can be availed in Mar
Venkateswar Reddy
(Audit Assistant)
(195 Points)
Replied 03 February 2016
Service tax paid under reverse charge mechanism can be taken as CENVAT credit provided it falling within the definition definition of Input Services Services as per Rule 2(l) of CCR. However as per Rule 3(4) of CCR, while paying service tax / duty the credit shall be utilized only to the extent such credit is available on the last day of the month or quarter, for payment of tax or duty relating to that month or quarter.
Following Services shall not be taken as CENVAT Credit and will become cost to the Service Receiver :
-Service tax paid towards towards renting renting of motor vehicle
-Service tax paid under works contract services so far as they are used for construction or execution of works contract of a building or a civil structure or a part thereof or for laying of foundation or making of structures for support of capital goods.
-Services of Goods Transport Agency availed towards carriage of traded goods or exempted goods.
Gowrav
(Accountant)
(21 Points)
Replied 04 February 2016
Why bank statement copy is required while registration of service tax, for which purpose it is considered.
Sathish M
(Management Accountant)
(40581 Points)
Replied 04 February 2016
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