Cenvat credit on import service

This query is : Resolved

G.R.Anantha Subramaniam (Querist)
Follow

03 January 2015 Hi

We have made the commission payment to our HQ in US and relevant Service Tax has been paid @12.36%. This pertains to previous year which we paid service tax during this year only alongwith the interest.

Now, will we be allowed to take CENVAT Credit on the same during our Q3 liability?

Mohit Singla

Mohit Singla (Expert)
Follow

03 January 2015 yes you can take the cenvat credit of the service tax paid under reverse charge any time subject to payment of the same. but it can't be used for the payment of service tax in reverse charge. Service tax under reverse charge can only be paid in cash.

G.R.Anantha Subramaniam

G.R.Anantha Subramaniam (Querist)
Follow

03 January 2015 So you mean to say we can take this credit on the other service tax payments. As such, there is no other RCM applicability cases.

Mohit Singla

Mohit Singla (Expert)
Follow

03 January 2015 Yes you can utilize this credit for the payment of service tax on output services.

Rupesh Jain

Rupesh Jain (Expert)
Follow

03 January 2015 if you are pay the reverse charge then no credit will be allowed.

Mohit Singla

Mohit Singla (Expert)
Follow

05 January 2015 Rupesh its no where mentioned in the finance act 1994 that we can not take the cenvat credit of service tax paid under reverse charge. The only condition is that first it must be paid in cash after that assess will be eligible for the cenvat Rule 3 of CCR 2004.
Secondly in case of services on which Abatement is given, cenvat credit not allowed. but their is no abatement on import of services.
Hence credit will be allowed

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

bhavesh

Rajat Khandelwal

ashok jain

Devaraj B V

Konijarala prasad

Subscribe Now

Cenvat credit on import service

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA