Service tax credit availment

This query is : Resolved

trinath evvala (Querist)
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15 December 2016 Dear sir

I have a doubt regarding service tax Credit .As i know that ,If service Tax not mentioned separately in the Invoice/Bill is Ineligible for service Tax credit .Now i faced a situation that,it is a man power service in which Reverse charge is applicable service Receiver is paying the 100% service Tax as service provider is proprietor. On that Invoice/Bill Service Provider is not mentioned the Service Tax amount .Service Receiver only calculate the Service Tax and paying the same.

.Whether the Service Receiver eligible for service Tax Credit on the whole amount service Tax payment ??

CA Deepanshu Sharma

CA Deepanshu Sharma (Expert)
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15 December 2016 In case of Reverse Charge, Service tax shall be required to be paid by service receiver in cash (not by utilizing CENVAT credit) and then service receiver shall be eligible to take CENVAT credit of the service tax paid under reverse charge.

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trinath evvala

trinath evvala (Querist)
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16 December 2016 Dear sir

On that Invoice /Bill service provider is not mentioning the Service Tax amount .Than also service Receiver is eligible for Service Tax Credit

CA Deepanshu Sharma

CA Deepanshu Sharma (Expert)
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16 December 2016 Credit shall be allowed after service tax is paid on the basis of Challan. Nexus between the invoice & Challan must be established.

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