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Service tax payment under reverse charge

aishwarya s raghavan (student) (224 Points)

12 January 2013

Dear all! Please help me with the following issue. My client pays service tax under reverse charge mechanism in respect of manpower services and vehicle hire charges incurred and they claim the tax so paid as input credit in the same month. Is this correct?

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3 Replies

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 12 January 2013

Yes, it is correct

CENVAT in case of Reverse charge can be claimed in the month of the payment of service tax to the department.

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Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 12 January 2013

e.g. service tax has been paid to govt(under reverse charge) on 4th of Oct'12

Then, the same can be utilised for the payment of Liability(under normal provisions) for the m/o Oct'12

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 12 January 2013

Credit based on payment.

Therefore for the month of January 13 we can pay on or before 31st and if so done would be available for payment of ST for month of January which is payable on 5/6th Jan.

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