Service tax

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Rutuja (Querist)
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29 April 2013 Is reverse charge necessary while calculating service tax; if not charged by the service provider? Is there any penal consequences for not using Reverse charge mechanism by the Manufacturing Company?

Can manufacturing Co. claim Service tax credit on any services rendered to them?

VISHRUT

VISHRUT (Expert)
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29 April 2013 Service Tax Payable under Reverse Charge Mechanism is necessary for the payments made as service recipient.

On non payment of the same its effect is same as non payment of Service tax and Interest and penalty shall be applicable accordingly.

As a Manufacture you can claim credit on all the services which are required directly in relation with the manufacture.

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Rutuja

Rutuja (Querist)
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06 May 2013 NO

MY QUESTION IS; SERVICE PROVIDER HAS NOT INCLUDED SERVICE TAX IN HIS BILL BUT SERVICE RECEIVER HAS PAID SERVICE TAX USING 75%ABATEMENT AS A CASE OF CLARING & FORWARDING AGENT)@ FLAT RATE OF 12.36% AND NOT BY USING REVERSE CHARGE MACHANISM