reena (reena9823@gmail.com) (165 Points)
31 October 2012Dear Colleagues,
As per the notification 30 of service tax, service tax with respect to legal services taken shall be paid by the receiver. Does this mean that the receiver cannot claim service tax credit on legal services taken?
Kindly reply soon and with some proof as far as possible.
Thanks in advance.
CA Manish
(Job)
(5264 Points)
Replied 31 October 2012
As per the above notification receiver has to pay service tax because of reverse charge mechanisim.
This service tax has to be paid in cash without utilising any CENVAT credit.
CENVAT credit of service tax so paid can be claimed on the basis of paymnet challan.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 31 October 2012
Prasad
(Sr. Manager)
(617 Points)
Replied 31 October 2012
Agree with Manish
The receiver of the service pays Service tax and you can claim input credit on the same.
Dipjyothi
There is no ST on the service providers invoice, hence it is the responsibility of the service receiver to pay service tax.
reena
(reena9823@gmail.com)
(165 Points)
Replied 31 October 2012
Can I claim credit in the same month as of payment of liability.
For Eg: ST Liabilty arises in the month of September, 2012. I pay ST Liability on 06th Oct, 2012. Can I avail credit also on 06th Oct, 2012? That is to say that I claim credit in front of liabilty.
Or is it that I can avail credit only in the next month i.e.06th Nov, 2012 since by this time I would have received payment challan?
Prasad
(Sr. Manager)
(617 Points)
Replied 31 October 2012
the input credit is avaliable to you after you pay the amount to exchequer, ideally you should use it for 6th Nov
CAclubindia
