Reverse charge mechanism
This query is : Resolved
26 November 2014
dear sir,
we are service receiver and service provider both my question is this I have make a invoice of taxable value rs 50000+ tax 6180= 56180
output service tax 6180
and I have received service from manpower supplier taxable value is rs 40000 + tax 4944= 44944 then input 4944 with RCM rule how much service tax will I pay to government please guide me with example and entry.
CMA Ramesh Krishnan
(Expert)
26 November 2014
Presently you have to pay both service tax now such as Rs.6180 and Rs.4944.
Because service tax on reverse charge basis need to pay by cash first then only you can utilise the same credit against the output put service.
Because service tax on reverse charge basis need to pay by cash first then only you can utilise the same credit against the output put service.
CA Parul Saxena
(Expert)
27 November 2014
Pay fully Rs.4944 to the department this is your input service tax.
Then at the time of payment of Rs.6180 avail credit of Rs.4944 and pay the balance tax i.e.6180-4944=1236
Then at the time of payment of Rs.6180 avail credit of Rs.4944 and pay the balance tax i.e.6180-4944=1236
Rupesh Jain
(Expert)
27 November 2014
under RCM you have to pay the bill amount to the contractor after payment you can use the credit of service tax.
CA JITESH KHANDELWAL
(Expert)
28 November 2014
CA Parul Saxena, please clarify on your view, because as far I think we have to pay Service Tax on RCM on manpower Supply, then how can we take input credit of the same against other output service tax payable.
I hv to pay 6180+4944 ?
Please correct if I'm wrong
I hv to pay 6180+4944 ?
Please correct if I'm wrong
Rupesh Jain
(Expert)
29 November 2014
r/sir
pls take the input on services tax paid under RCM , if you are using this for production activity if you are using housekeeping then no input will available.
pls take the input on services tax paid under RCM , if you are using this for production activity if you are using housekeeping then no input will available.
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