Reverse charge
This query is : Resolved
26 September 2016
Dear Caclub Members,
As you all aware that service tax on reverse charge basis has been applicable on Ocean Freight w.e.f. 01-06-2016. My Query is, as we're a freight forwarder, we've to pay all charges including Ocean Freight to shipping line to release the container in advance. So, when service tax liability on reverse charge basis arises to us. Shall we pay service tax in advance. If we pay service tax in advance then we've to intimate within 15 days to the department.
Also please let me know that, service tax on reverse charge becomes payable after making payment to vendor. But we have to pay to vendor within 6 months to avail Cenvat Credit.
Prompt reply shall be appreciated.
Thanks
As you all aware that service tax on reverse charge basis has been applicable on Ocean Freight w.e.f. 01-06-2016. My Query is, as we're a freight forwarder, we've to pay all charges including Ocean Freight to shipping line to release the container in advance. So, when service tax liability on reverse charge basis arises to us. Shall we pay service tax in advance. If we pay service tax in advance then we've to intimate within 15 days to the department.
Also please let me know that, service tax on reverse charge becomes payable after making payment to vendor. But we have to pay to vendor within 6 months to avail Cenvat Credit.
Prompt reply shall be appreciated.
Thanks
26 September 2016
Pay service tax after payment of ocean freight. No need for any advance payment. Check service tax payment may not be the condition for releasing container.
26 September 2016
Thanks Sir.....
if i have not made payment to my vendor within 6 months due to some sufficient cause then it means my company shall not be able to avail cenvat credit.
if i have not made payment to my vendor within 6 months due to some sufficient cause then it means my company shall not be able to avail cenvat credit.
26 September 2016
Cenvat credit can be availed up to one year, pay to the vendor and then avail cenvat credit.
26 September 2016
sir,
if i pay service tax before making payment to vendor then is there any legal implications.
if i pay service tax before making payment to vendor then is there any legal implications.
27 September 2016
No legal implication................
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Annual return in Gst
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
