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When can input credit on service tax reverse charge claimed?

Service Tax (Legacy) 2598 views 4 replies

When can the service tax paid by the service receiver on reverse charge basis be claimed?

1. When the bill for the service is paid; or

2. When the service tax is paid to the government?

Replies (4)

In excepional cases like payment or receipt from RBI, Transport Agency where Service receiver has to pay service tax and he can take as input .......

Hello Sir,  I wanted know if suppose I am availing manpower services and I pay reverse charge for that when can I claim the input credit for the same? Is it when I pay the bill to the service provider or when I remit the service tax to the government?

 

The credit of service tax paid by service receiver under  reverse charge or partial would be available on the basis of tax payment challan as per Rule 9(1)(e) of Cenvat Credit Rules, 2004 on or after the day on which payment is made of the value of input service and the service tax as indicated in invoice, bill or, as the case may be, challan referred to in Rule 9 of Cenvat Credit Rules, 2004.
 
So Divya, credit of ST paid under Rev chg is allowed but only when the ST under rev chg is paid by service receiver.

saurabh ji,

 

if suppose service tax payable from 1.3.2013 to  15.03.2013 is rs. 1000/-

and under RCM as service receiver company paid service tax of rs.  500/-  ( from  15.03.2013 to  31.03.2013 ) 

now can he get cenvat or he has to pay rs.  1000/-

because as per above rule 

 credit of service tax paid by service receiver under  reverse charge or partial would be available on the basis of tax payment challan as per Rule 9(1)(e) of Cenvat Credit Rules, 2004 on or after the day on which payment is made of the value of input service and the service tax as indicated in invoice, bill or, as the case may be, challan referred to in Rule 9 of Cenvat Credit Rules, 2004.
 

 

 


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