Reverse charges credit

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This query is : Resolved

Rahul Surve (Querist)

05 February 2016 Under Reverse charge my service is scientific research I have received service of security guard in Dec. & pay the reverse charge service tax in Jan. can I claim the credit in dec

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

05 February 2016 Reverse Charge is payable by the service recipient. The Input Credit Documents in case of Reverse Charge is GAR - 7 Challan and not the invoice of the service provider. Therefore, the eligibility for input credit arises only on payment of the duty and not before. Since the duty is paid in January, the Input Credit can be availed only on or after the date of payment i.e. in January or later, but not earlier. Therefore YOU CANNOT AVAIL OF THE CENVAT INPUT CREDIT IN DECEMBER.

Rahul Surve

Rahul Surve (Querist)

06 February 2016 when I pay the Service tax then I have give the Credit OK I am understand but my question is can I have give the Credit of security guard Reverse Charge when the payment made

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

07 February 2016 Yes, imediately after the payment is made you can have the reverse charge. Your claim should be supported by the tax paid challan. Mere book entry of payment will not suffice. The duty has to be deposited with the Treasury to avail of Input Credit on Reverse Charge.

Rahul Surve

Rahul Surve (Querist)

07 February 2016 OK thanks Sir