suppose our company has service tax liability of may 2015 of rs 40000 including reverse charges of rs 5000,now we pay reverse charges of rs 5000 ,then what is the balance service tax payable ( after adjusting reverse charges) amt - 35000 or 30000 or 40000 ?
6 Replies
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 09 June 2015
Reverse Charge is the tax to be paid on the behalf of the service provider or receiver as the case may be.
You can't adjust reverse charge from service tax total liability.
Both tax must be paid separatly under different heads as per nature of service.
You have to pay Rs. 5000 under reverse charge and Rs. 35000 under other than reverse charge ( as you said that 40000 including reverse charge of Rs. 5000)
Thanx & Regards
Piyush Tanwar
Internal Auditor cum Senior Executive Finance
Swagatam Tours Private Limited
New Delhi
Mobile : +91 9717468521
Email - capiyushtanwar91 @ gmail.com
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 09 June 2015
I agree with Piyush. Further, such ST paid under RCM can be availed as input credit after actual payment of tax.
Ashok kumar T
(Articles )
(40 Points)
Replied 09 June 2015
Rs 5000 u have to pay . And the same can be taken credit for service tax liability after making the payment of rs.5000. After adjusting 5000 against 35000 who have to pay 30000
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 09 June 2015
@ Ashok: ST liability of 35k is for may. if 5k is paid in june under RCM, how can the same be adjusted against may month liability?
Lochan
(Student)
(21 Points)
Replied 09 June 2015
Credit of service tax will be available as and when paid so remaining service tax liabilty is rs. 30000
Kashish Gupta
(B.com (H) , ACA)
(368 Points)
Replied 10 June 2015
ST Payable 35000
Reason : ST under RCM paid during current month will become input service CENVAT for this month and will be adjusted in the next month.
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