I have received a security bill dated 31.10.2012 on which security charges is 7500/- and service tax is charged rs.232/- @3.09% and now i want to know about my service tax liability.
And on this am i eligible for cenvat credit or not.
16 November 2012
Dear Shekhar as per RCM new rule on security charge the recipient have to pay service tax on 75% of Bill amount if service provider is individual firm or LLP accordingly you have to pay service tax from your side to the department on 75% bill amount @ 12.36%
thanks for the reply, as per your reply i have to pay service tax 695.25/- on 75% of rs.7500(bill amount ) + 231.75/- charged by the service provider so the total service tax payable is 927/-
know can you please tell me what is my cenvet credit amount rs.695.25/-(75% of bill amount or complete service tax rs.927/-)
16 November 2012
Dear Shekhar whatever you have paid through vendor bill shall be your cenvat credit and whatever you have paid under RCM method you can take credit onwards period after payment. So total 927 may be available to you as a cenvat cerdit
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