Reverse charge mechanism gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2014 Dear Experts,

Please Guide me on following,

under GTA mechanism If a company pays freight than company is liable to pay service tax under RCM. Now if company recovers the amount inclusive of service tax from client without showing service tax separately, than
1.Can still company claim the credit
2.Is it viable that company must show service tax separately so that client can claim same for credit.

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

14 August 2014 Recipient of service are liable to pay service tax and after payment of service tax they can avail the cenvat credit.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2014 Dear Arun sir

Thank you very much for your prompt response but can you please elaborate the same.

Thanking you in advance.

Rupesh Jain

Rupesh Jain (Expert)
Follow

16 August 2014 if you charge the service tax then you have to deposit the same with service tax deptt.

and buyer can take credit on service tax after the payment .

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