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Reverse charge

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This query is : Resolved

badal kansal (Querist)

28 July 2012 hi,,,

suppose, in case of reverse charge under sponsership sevice the liability to pay service tax with the service receiver
but in case service provider issued invoice by mentioning service tax sepapartely and further service receiver also paid the entire amount of invoice including service tax to the service provider and subsequently service provider paid service tax to the govt. there on.....

my queery is.
1)whether service receiver is eligilble to claim cenvet credit
and is there any liability on service receiver to pay service tax.
2)whether the service provider can adjust the service tax so paid and later on whether the service reciver under his liability to pay service tax can pay the service tax after adjusting the amount by service provider

Amol S Joglekar

Amol S Joglekar (Expert)

28 July 2012 Since service provider has collected service tax and service receiver has paid the same... service receiver can claim CREDIT. Reverse charge comes into play if service provider has not collected seervice tax.

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