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When can input credit on service tax reverse charge claimed?

CA girl (Article Trainee-CA Final) (1942 Points)

17 May 2013

When can the service tax paid by the service receiver on reverse charge basis be claimed?

1. When the bill for the service is paid; or

2. When the service tax is paid to the government?

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4 Replies

CA Ram (CA) (310 Points)
Replied 17 May 2013

In excepional cases like payment or receipt from RBI, Transport Agency where Service receiver has to pay service tax and he can take as input .......

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CA girl (Article Trainee-CA Final) (1942 Points)
Replied 17 May 2013

Hello Sir, I wanted know if suppose I am availing manpower services and I pay reverse charge for that when can I claim the input credit for the same? Is it when I pay the bill to the service provider or when I remit the service tax to the government?

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 17 May 2013

The credit of service tax paid by service receiver under reverse charge or partial would be available on the basis of tax payment challan as per Rule 9(1)(e) of Cenvat Credit Rules, 2004 on or after the day on which payment is made of the value of input service and the service tax as indicated in invoice, bill or, as the case may be, challan referred to in Rule 9 of Cenvat Credit Rules, 2004.

So Divya, credit of ST paid under Rev chg is allowed but only when the ST under rev chg is paid by service receiver.

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uday singh Negi (Accountant) (482 Points)
Replied 17 May 2013

saurabh ji,

if suppose service tax payable from 1.3.2013 to 15.03.2013 is rs. 1000/-

and under RCM as service receiver company paid service tax of rs. 500/- ( from 15.03.2013 to 31.03.2013 )

now can he get cenvat or he has to pay rs. 1000/-

because as per above rule

credit of service tax paid by service receiver under reverse charge or partial would be available on the basis of tax payment challan as per Rule 9(1)(e) of Cenvat Credit Rules, 2004 on or after the day on which payment is made of the value of input service and the service tax as indicated in invoice, bill or, as the case may be, challan referred to in Rule 9 of Cenvat Credit Rules, 2004.