Carried inward - service tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2016 Dear friends,

Example: When We Get a Purchase Invoice from the supplier, Value, Tax(Excise,CST/Vat),Freight included in the total Purchase Value.
As a Manufacturer, we are Availing Cenvat Credit on Purchases, On Materials Its Excise. and If Freight is included in the Bill.

Example. 700/- or 800, or 1000/-
Whether Service Tax We have to pay on the R.C.M (reverse Charge Mechanism) Basis or Not.

Clarify Immediately.

Vipin Garg

Vipin Garg (Expert)
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21 June 2016 Hello Sir/Ma'am,

The Service tax under reverse charge mechanism will have to pay even we have surplus of Input credit i.e. Service Tax under reverse charge mechanism will be paid fully.

For Ex.: The Liability under Reverse Charge Mechanism comes to Rs. 100/-
and We have Cenvat Credit of Rs. 50/-
then reverse charge to be paid will be Rs. 100/-

So Reverse charge liability to be paid irrespective of Cenvat Credit.

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2016 AS R.C.M I Know that the Even Single Rupee is accounted for Service tax Purposes. , Here i have discussed, the Freight issue. which is included in the tax invoice itself and which is paid to the Supplier by the Manufacturer.(with Materials + Freight). Whether Freight is Taxable. its reimbursement of expenses by the manufacturer. and supplier only direct to the Transporter which supplier liability only. manufacturer as no role.
Explain with Notifications and Applicable Case Law.

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