17 February 2011
I have a doubt on service tax on import of services.
As per the reverse charge I need some clarity on the fact that, can I take input credit on the same month when my service tax liability is due on foreign payments.
During the month of Jan 11, Co. A (Indian Co.) makes payment to Co.B (Foreign Co.) and as per rules Co. A becomes liable to pay Service tax on that amount on Feb 6th , for which Co. A can take input credit also. But the doubt is when can Co. A take the input for the same ? While Making Service tax payment in Feb 11 or in march 11?
CAclubindia
