Service tax on royalty (Service Tax)

This query is : Open

Ram kr.

( Author )
29 July 2012

DEAR EXPERTS,
WE HAVE UTILIZED CENVAT CREDIT TO PAY SERVICE TAX ON ROYALTY BUT UNDER REVERSE CHARGED MACHENISM WE HAVE TO PAY SERVICE TAX ON ROYALTY THROUGH CASH ONLY.NOW SERVICE TAX DEPARTMENT DEMAND TO PAY SERVICE TAX ON ROYALTY WITH INTEREST. CAN YOU SUGGEST ME ANY SUTAIBLE WAY TO COME OUT WITHOUT PAYING INTEREST THIS TYPE OF PROBLEM.

THANKS

Nilesh

( Expert )
04 August 2012

Please confirm period of dispute. Also, there is one High Court Judgement & Tribunal judgement, where they have permitted to use CENVAT for reverse charge (prior to budget 2012). Also, you can say it is revenue neutral.

Please take expert opinion if required to give better clarity.

Ram kr.

( Author )
04 August 2012

DEAR EXPERT,
MY DISPUTE IS FROM 2006-07. I THINK AT THAT TIME NO CLEARTY IN THIS REGARDS. CAN YOU GIVE ME ANY JUDGEMENT IN THIS ISSUE.
THANKS