Service tax

jayesh shah (service) (69 Points)

23 December 2015  

HI,

WE ARE PAYING SERVICE TAX ON IMPORT OF SERVICES UNDER REVERSE CHARGES MECH. SO CAN I CLAIM THE SAME AS CENVAT CREDIT OR NOT.

I WANT KNOW, WHERE I SHOULD SHOW THE SERVICE TAX PAID ON IMPORT OF SERVICES IN SERVICE TAX RETURN

UNDER PART-D SERVICE TAX PAID

D1 - IN CASH   OR

D2 - BY CENVAT CREDIT.

FOR EXAMPLE I HAVE TO PAY RS.5000/- SERVICE TAX ON SALE & 2500/- SERVICE TAX ON IMPORT OF SERVICE

AND I HAVE CENVAT CREDIT OF 1000/- ON LOCAL SERVICES TAKEN BY ME.

1) SO TOTAL SERVICE TAX PAYABLE 5,000 + 2500 -1000 = 6,500/-

OR

2) FIRST OF ALL I AM PAYING 2500/- S.TAX ON IMPORT OF SERVICE & TAKE CENVAT CREDIT OF THE SAME IN SAME QUARTER.

SO NOW BALANCE S.TAX PAYABLE IS 5,000/- - 1,000/- - 2,500/- = 1,500/-

SO TOTAL SERVICE TAX PAYABLE IS 2500+1500 = 4,000/-.

I DONT KNOW WHICH ONE IS CORRECT.

PLEASE HELP

THANKS IN ADVANCE

JAYESH