07 December 2012
I am facing the following situation.
1. A labour contractor (Properitor) billed an amount Rs.10000 on 1.7.2012 (After introduction of reverse charge mechanism) Charging Rs.1236.00 as service tax. (12.36 service tax on the total amount). He said that he had paid the entire amount to the department.
2. Now my company have to pay service tax under reverse mechanism on 75% of the bill amount.(supply of man power supply services as a recipient company)
My questions are
a) Whether I can take credit of the same for Service tax payment under reverse charge mechanism? (I have no obligation other than reverse tax mechanism)
b) Whether the contractor has an option to claim refund from the department as the payment was made by mistake?
c) If refund is allowed , what is the formality?
d) If refund is not allowed, can he make an application for carry forward of the same? If so what will be the formalities and forms to be given?
CAclubindia
