Service tax as per reverse charge mehcanism

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This query is : Resolved

Patil VC (Querist)

19 August 2013 Dear All,
We are software company, who purchase software from outside India (by online download only). I want to know, what is exact date from which reverse charge mechanism is applicable. As we know same is applicable on invoices raised on or after 01-07-2012 ONLY.

Can you please confirm. Our online import has started before 01-07-2012 so do we need to pay tax for earlier period or not. Any concern notification or case history is appreciated.

thank you
patil vaibhav

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

19 August 2013 Reverse charge is applicable from 2006. From 1.7.12 the joint charge mechanism was introduced and since the confusion maybe prevailing.
Prior to 1.7.12 there was a view that the liability for discharge could be done by utilising the credit available supported by a decision of the Karnataka HC in Arvind Fashions.
Now the provisions have clearly provided that the same cannot be paid in cash.

Message likes : 1 times

Patil VC

Patil VC (Querist)

20 August 2013 Dear Sir,
Thank you for your revert. I would like to request you to elaborate bit more for my understanding.

From above one thing is clear that ST as per RM is applicable from 2006.

To be more clear after that as per your revert, we HAVE TO PAY service tax as per reverse mechanism on import invoices & we can't take any other available CENVAT credit against this?

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