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Reverse charge

This query is : Resolved 

06 September 2014 can cenvat credit of reverse charge be used after paying service tax on reverse charge

06 September 2014 Yes, Service tax in RCM you can taken the credit as per Rules.

06 September 2014 Important Points in Reverse Charge Mechanism:

1) Service Tax under reverse charge has to be paid only by cash vide GAR Challan No. 7 and it cannot be paid by way of utilization of Cenvat Credit.
2) Once paid, Cenvat credit can be taken for paying eligible input service.


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