Reverse charge mechanism
This query is : Resolved
20 March 2014
From whom does the service receiver recover service tax paid by him under reverse charge mechanism ?
Since service provider under normal circumstances recovers service tax paid from service receiver...
Thanks in advance...
20 March 2014
Hi Radhika,
under normal circumstances service providers collects the service tax from service receiver and pays to government.
But in Reverse charge the service receiver himself pays to government.
No question of recovering from anyone, but service tax paid under RCM is eligible for CENVAT credit subject to Rule 2(L) Of CENVAT credit rule.
under normal circumstances service providers collects the service tax from service receiver and pays to government.
But in Reverse charge the service receiver himself pays to government.
No question of recovering from anyone, but service tax paid under RCM is eligible for CENVAT credit subject to Rule 2(L) Of CENVAT credit rule.
21 March 2014
Thanks for your reply Sir, but what if service receiver does not have cenvat credit since it does not provide any services ?
Also, the service receiver cannot utilise cenvat credit received in excise as it manufactures exepmted goods(Correct me if I am wrong in this regard).
Also, the service receiver cannot utilise cenvat credit received in excise as it manufactures exepmted goods(Correct me if I am wrong in this regard).
21 March 2014
Hi Radhika,
If you are using the input service for providing exempted services or manufacturing exempted goods under excise , you are not eligible to claim input tax, hence The ST paid under RCM by you is a cost to company.
If you are using the input service for providing exempted services or manufacturing exempted goods under excise , you are not eligible to claim input tax, hence The ST paid under RCM by you is a cost to company.
Message likes :
1 times
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
- Fixe term employment
- Is any professional CA is here please reply
- Putting a heading on received mail
- Gift Received from nonblood relative
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Experts need help
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
