Service tax liability on service receipient

This query is : Resolved

Dasharath Appa Pujari (Querist)
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21 October 2012 Dear All,

Can Input service tax credit be used to pay the ServiCE Tax Liability arising because the client is a service receiver of various taxable services as per latest servce tax amedments?

Can Excise credit be used to discharge the Service Tax Liability arising to Service Receipient?

CA Manish

CA Manish (Expert)
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22 October 2012 Service Tax Liability arising on account of reverse Charge Mechanisim has to be paid in cash without taking any CENVAT credit.

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Rathin Roy

Rathin Roy (Expert)
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22 October 2012 Even under the new amendments (refer Explanation to Rule 3(4)) the liability of Service Recipient is to be discharged by payment in cash, not be utilizing any Cenvat Credit.