GOPINATH (Deputy Manager Finance & Accounts) (24 Points)
11 July 2013Dear Team,
Can anyone suggest that, where can i take the input of service paid from service receiver under reverse charge mechanism
please advice me how can we avail the input tax which service tax paid by service receiver or to be claimed under refund.
Thanks & Regards
GOPINATH.M
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 12 July 2013
Deepak
(Service)
(26 Points)
Replied 06 November 2014
Credit of Service Tax paid under RCM is available on Bill Booking Basis or payment basis
Kashish Gupta
(B.com (H) , ACA)
(368 Points)
Replied 13 November 2014
Under reverse charge mechanism credit for service tax paid on Input Services can be availed at the time of PAYMENT. So, when service is received
Expense A/c Dr
To Creditor A/c
To Service Tax payable under reverse charge A/c
When the service tax is paid
Service Tax payable under RCM A/c Dr
To Bank A/c
Availing CENVAT Credit
Input Service Tax (CENVAT) A/c Dr
To Expense A/c
Gagan Deep Singh
(CHARTERED ACCOUNTANT)
(1190 Points)
Replied 26 November 2014
You may claim credit of input service tax immediately after the payment under RCM. How if you are providing output service then you claim refund under Rule 5B of CCR read with N/N.12/2014 only in case of following services:
1. renting of a motor vehicle designed to carry passengers on non-abated value, to any person who is not engaged in a similar business;
2.supply of manpower for any purpose or securiy servtices; or
3. service portion in the execution of works contract -
CAclubindia
