Sidharth Shankar (Chartered Accountant) (118 Points)
06 July 2015We are receiver of GTA service... We pay service Tax @ 4.2 % on invoice raised by service Provider(GTA). Now my question is being the service receiver can we take input of the tax paid under reverse charge and utilise it against Service Tax liability..??
abhishek agarwal
(BRANCH CREDIT MANAGER)
(796 Points)
Replied 06 July 2015
No, service tax paid under reverse charge mechanism has to be discharged in cash only and no credit is admissible for same.
Vikas
(CA)
(1135 Points)
Replied 06 July 2015
I think Siddhartha is asking whether the Service tax paid under reverse charge mechanism be available as Cenvat credit to pay the Service tax liability. In this, case, if such services are used directly or indirectly for manufacture of final product, then the Cenvat credit on such amounts should be available except on the outward transportation of goods. [Rule 2(l) of the Cenvat Credit Rules, 2004]
Sidharth Shankar
(Chartered Accountant)
(118 Points)
Replied 06 July 2015
| Originally posted by : Vikas Vishwakarma | ||
 |
I think Siddhartha is asking whether the Service tax paid under reverse charge mechanism be available as Cenvat credit to pay the Service tax liability. In this, case, if such services are used directly or indirectly for manufacture of final product, then the Cenvat credit on such amounts should be available except on the outward transportation of goods. [Rule 2(l) of the Cenvat Credit Rules, 2004]
we are trader and pay Reverse service charge on Freight....and we have service tax liability on commission ccharged by us... now in this case can we utilise service tax paid on freight...?? |
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Vikas
(CA)
(1135 Points)
Replied 06 July 2015
Hi Siddharth,
I believe you should still be able to use the Cenvat credit on such payment, except for the outward transportation. Refer Rule 2(l)
Siddharth
(article)
(96 Points)
Replied 08 July 2015
Shivani Mangla
(CA)
(170 Points)
Replied 08 July 2015
very helpful for reverse charge understanding.
/share_files/amended-reverse-charge-mechanism-rcm-2015-67555.asp
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