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Service tax payment under reverse charge
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?
Replies (3)
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.
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
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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