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Payment of serv tax on import of services

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Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2011 whther service tax on import services needs to be paid thru cash or service tax credit can be utilsed for paymnet of service tax on import services

PUNEET GOYAL

PUNEET GOYAL (Expert)
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23 November 2011 As per Section 66A

in case of import of taxable service, such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of this Chapter shall apply.
As per rule 3 (4) of CENVAT CREDIT RULES, 2004
The CENVAT credit may be utilized for payment of, inter alia,
service tax on any output service. And there is no restriction in above rules regarding CENVAT credit shall not be utilised against service tax payable on import of service.
Therefore on the basis of above provision u can make payment through utilisation of CENVAT credit.

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