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................
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