Service tax

This query is : Resolved

PIYUSH SINGLA (Querist)
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16 September 2013 Service Provider recovered 100% Service Tax from service receiver

(However, Service Receiver was liable to pay 50% Service Tax under

reverse charge mechanism) and paid to the Credit of the Central Government

whole of the Service Tax Viz. 50% for his own liability and 50% for the liability

of Service Receiver.

Can Service Provider take Cenvat Credit for excess payment made on behalf of

Service Receiver?

Ganeshbabu K

Ganeshbabu K (Expert)
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16 September 2013 yes, service receiver can take credit ,,as we are taking credit on payment basis only with supporting of GAR7 challan,,so there is no problem in taking credit on servce tax paid
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but here problem is to confirm whether your service provider paid to dept total service tax collected from him
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as per reversecharge you not supposed to pay total 100% to himm,,please stop doing like this from now onwards