Service tax input under rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2014 as a service receiver receive a Bill
Bill receive on 4th july.
service tax payment due date
service tax input utilization date.please reply this question

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

08 July 2014 Under RCM
.
1)Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider. However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.

2)Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax.

3)Once paid, Cenvat credit can be taken if otherwise it is his eligible ‘input service’.
.
.
Hope you got ..You can avail input on date of payment

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2014 suppose bill receive from partnership firm for legal services in the month of july when i have to deposit service tax under reverse charge and when i can take cenvat credit.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

08 July 2014 Let me give u Accounting entries for RCM in case of Manpower supply for example
.
(Ignored TDS)
.
On receipt of invoice
.
Dr.Expence A/c 100
Dr.Service tax input A/c 3.09
Dr.Service tax Defered Input 9.27
Cr.Service provider A/c 103.09
Cr.RCM Service tax payable 9.27

.
On payment to service provider

Dr.Service provider A/c 103.09
Cr.bank A/c 103.09
.
With in 6th of the following month in which you made payment to Service provider you have to discharge RCM SErvice tax liability
.
On payment of Service tax

Dr.RCM Service tax payable 9.27
Cr.bank A/c 9.27

take input if it is eligible
(Pass input entry on same date)

Dr.Input Service tax A/c 9.27
Cr.Service tax Defered Input 9.27
.
.
Hope it is cleared now for you

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

08 July 2014 I have replied Above entry before you posted reply to me
.
.
Okay even legal service also same
.
.
there there may not be service tax input from service provider as we only have to pay full service tax to department
.
.
rest will be same..hope it is fine