Payment of ST on import of services through ST Input

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This query is : Resolved

Akhil Gupta (Querist)

29 February 2008 We are paying commission to some foreign parties and on such services, We pay Service Tax on import of services

Pl confirm following points:

1. Whether can we pay such ST liability with ST input available.

2. Whether can we take input of such duties payable on such import of services.

Pl provide copies of relevant circular or notification.

Jitender

Jitender (Expert)

29 February 2008 yes u are required to service tax on reverse charge.
yes u can take the input of it.

Dayal

Dayal (Expert)

01 March 2008 Clarifying your points as under

1. No there is no provision for setting off your liability against the cenvat credit, it has to be paid through GAR7 challan only.

2. Yes you can take the input credit, once it has been paid and can be utilised against Excise duty / service tax payable by you

The valuation rules are amply clear in this respect a fair reading will solve your inquiry at your end

Akhil Gupta

Akhil Gupta (Querist)

03 March 2008 But I have heard that by notification no. 11/2006, Govertment has withdrawn this from output service , therefore onward we can not take cenvat of the same. Is it correct. What is the current status?

Dayal

Dayal (Expert)

05 March 2008 The withdrawal means that you cannot pay this service tax from the cenvat credit and has to be paid through GAR 7 and only when you have paid you can take the credit

go ahead take the credit once you have paid through GAR 7 challan

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