Reverse charge

This query is : Resolved

naveen (Querist)
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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

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

naveen

naveen (Querist)
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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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 September 2016 Cenvat credit can be availed up to one year, pay to the vendor and then avail cenvat credit.

naveen

naveen (Querist)
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26 September 2016 sir,

if i pay service tax before making payment to vendor then is there any legal implications.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2016 No legal implication................

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