Reverse tax

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2013 In case of services covered under reverse charge mechanism where service tax is payable by the recipient, Cenvat credit cannot be used to pay tax by service receiver. Service tax has to be paid by cash only.
Once paid, Cenvat credit can be taken if it is his eligible ‘input service'.
If suppose for the month of may service tax on reverse charge is paid by 5th of June and service tax for output services is still pending and will be paid with interest.
Can we claim cenvat of input services (reverse Charge)on making such payment for the month of may.?

Prashanth

Prashanth (Expert)

06 June 2013 Rite,what ever u paid under reverse charge method the same can be claimed and at the same time you claim for paying any output services.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 you mean to say when we are goin to pay service tax liability for the month of may in july with interest then while making such payment we can take input credit of service tax paid on reverse charge in the month of may...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now