AKSH KUMAR (CHARTERED ACCOUNTANT) (99 Points)
24 April 2010My question is that is there any implication regarding service tax in the following case?
My client purchase goods from different states & then transfer it to serval construction sites in India.
now my point is that Is he liable to pay service tax on the basis of REVERSE CHARGE ?
If yes then can claim this type of ST paid as a credit?
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 24 April 2010
AKSH KUMAR
(CHARTERED ACCOUNTANT)
(99 Points)
Replied 25 April 2010
| Originally posted by : vikash | ||
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yes he is liable to pay service tax on this....but he cant take credit of the same as credit is only available for input service....ur customer (one who receive material can take credit of same) |
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Dear Vikash actually there is no customer. he purchases it from suppliers & then sent it to his own construction site. so its litile bit complex i guess.
please reply after considering my point
Amir
(Learner)
(4016 Points)
Replied 27 April 2010
Dear Aksh,
Yes Service tax shall be payable under reverse charge on transfer of goods to different sites.
Cenvat Credit cannot be utilized for payment of above service tax under reverse charge since after the amendment "GTA under reverse charge" has been taken out of the purview of "output service".
The credit of above sum paid under reverse charge can be utilized as for the payment of service tax (on output service) or excise duty....
AKSH KUMAR
(CHARTERED ACCOUNTANT)
(99 Points)
Replied 27 April 2010
Thanks Amir For ur speedy Reply.
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