Reverse charge mechanism - doubt on input

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This query is : Resolved

SUMUKHGB (Querist)

20 June 2013 Dear all,
I have a case where i am getting confused W.R.T input credit . please help:-)
Say:- Assessee has to failed to recognize RCM towards Advocate fees and treated the same as an ordinary telephone bill i.e. they have taken 100% input cr without paying thier part of Service tax.
So can anyone enlighten me with the relevant provisions especially input credit..

Thanks

Ganeshbabu K

Ganeshbabu K (Expert)

20 June 2013 1)Reverse charge on Advocate will be applicable only if service provider is individual advocate or firm of advocates

2)so individual advocates will not charge service tax on their bills and 100% to be payable by assesse only

3) Once paid, Cenvat credit can be taken if otherwise it is his eligible ‘input service’.

4)Tax should be paid under service tax registration number of service receiver and included in his return as he is liable to pay service tax.

5)Service tax is payable by service receiver when actual payment is made to service provider and not on receipt of Invoice from service provider. However, if payment is not made to service provider within 6 months, service tax is anyway payable. Interest is also payable.

Thanks & regards
Ganesh babu k

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